Workflow
Why Goldman Sachs Just Upgraded These 3 Stocks and What It Means
CRWDCrowdStrike(CRWD) MarketBeat·2025-01-14 12:15

Goldman Sachs' Stock Upgrades and Sector Recommendations - Goldman Sachs upgraded several stocks and recommended sectors in their 2025 macro outlook report, highlighting opportunities in the energy sector and emphasizing robust business models as key winners [2] - The bank upgraded Spotify Technology (NYSE: SPOT), CrowdStrike Holdings Inc (NASDAQ: CRWD), and Patterson-UTI Energy Inc (NASDAQ: PTEN), citing potential double-digit upside in the technology sector and the recent crude oil breakout past 75[3]SpotifyTechnology(NYSE:SPOT)−Spotifyisexpectedtobenefitfromitssubscription−basedbusinessmodel,offeringstableandpredictablefinancials,makingitapotentialwinnerin2025[4]−Thestockiscurrentlytradingat9375 [3] Spotify Technology (NYSE: SPOT) - Spotify is expected to benefit from its subscription-based business model, offering stable and predictable financials, making it a potential winner in 2025 [4] - The stock is currently trading at 93% of its 52-week high, with Wall Street analysts forecasting a 33.75% increase in EPS to 11.8 over the next 12 months, up from 8.8[6]−GoldmanSachsissuedaBuyratingforSpotifyinJanuary2025witha8.8 [6] - Goldman Sachs issued a Buy rating for Spotify in January 2025 with a 550 valuation, implying a 20% upside from current prices [7] CrowdStrike Holdings Inc (NASDAQ: CRWD) - CrowdStrike gained institutional support, with State Street increasing its holdings by 2.9% in November 2024, bringing its net position to 2.7billionor3.92.7 billion or 3.9% ownership [8] - Despite recovering to 88% of its 52-week high, analysts maintain a Buy rating with a 415 price target, suggesting a 19% upside potential [10] - The company's cybersecurity services are seen as critical for future economic growth as more business moves online [11] Patterson-UTI Energy Inc (NASDAQ: PTEN) - Goldman Sachs highlighted oil as a commodity with significant upside potential, aligning with Warren Buffett's 29% stake in Occidental Petroleum and hedge funds' increased oil futures positions [12] - Patterson-UTI, with a market cap of 3.3billion,ispositionedattheforefrontoftheenergyvaluechain,expectedtobenefitfromEPSgrowthaheadofpeers[13]−GoldmanSachsassignedaBuyratinganda3.3 billion, is positioned at the forefront of the energy value chain, expected to benefit from EPS growth ahead of peers [13] - Goldman Sachs assigned a Buy rating and a 10 per share valuation, indicating an 18% upside for investors [14]