Goldman Sachs announced its list of global stocks to watch for December, highlighting five stocks with gains of more than 70%. Self-driving car chip maker Horizon Robotics China’s Horizon Robotics is on track for a 94% return thanks to upgrades to its product mix aimed at “capturing high-end smart driving demand,” Goldman said. The company is developing AI chips for self-driving cars. Goldman analysts expect the company’s stock to be worth HK$15.30 ($1.97) over the next 12 months, based on competitive analysis and operating profit growth. Key downside risks include stronger-than-expected competition and price pressures in the auto supply chain, which Goldman said could come from a slowdown in demand. If the company does not upgrade its product base or attract sufficient new customers, its results could be affected, the memo said. He added that geopolitical tensions pose risks to supply chains. Horizon Robotics stock has increased 130% since the beginning of the year. Goldman is eyeing mass production of the J6P chip and driver assistance software HSD. Taiwanese tech firm Honghai Goldman has signaled that artificial intelligence servers and smartphones will accelerate growth for Taiwanese tech firm Honghai. The company’s products include consumer electronics and cloud services. We rate the stock a buy as we see a potential upside of 77%. Goldman said Honghai should trade at a price-to-earnings ratio of 21 times based on a competitor analysis, with a 12-month price target of NT$400. Goldman said weaker-than-expected results in its AI server business and electric vehicle services posed risks to the company’s results, as did delays in ramping up global production capacity and “more intense than expected” competition in consumer electronics manufacturing. The company’s stock price has increased more than 24% since the beginning of the year. Hon Hai’s 2025 financial results are scheduled to be announced in March. German online retailer Zalando Goldman has improved its outlook for online retailer Zalando. The November list gave German companies 77% upside. Analysts predict a 90% rise in December, calling Zalando “a winner of the online channel shift, but the upside from the About You acquisition is undervalued.” The deal with About You was completed earlier this year. Zalando reported strong third-quarter results in November, after its stock price fell 4.4% in October. Goldman blamed the decline on European consumer wariness and investor concerns about the potential for disruption from AI. Goldman managing director Richard Edwards continues to believe that “the market is underestimating Zalando’s ability to drive both top-line performance” and earnings before interest and tax margin expansion, and “we believe current valuations are too low” for a business that should grow earnings by 20% each year for the next five years, the note said. Zalando’s stock price has fallen 26% since the beginning of the year. India-based travel company MakeMyTrip India-based online travel company MakeMyTrip has “catalysts in place for a return to growth,” Goldman said, giving it a 72% beat on estimates. The investment bank has a buy rating on the name, with a 12-month price target of $123, considering future cash flow, earnings multiples, and M&A potential. However, “key risks to our investment view include lower-than-expected travel demand, increased competition, pressure on take rates, and suboptimal capital allocation,” the note said. Shares in U.S.-listed MakeMyTrip have fallen 37% since the beginning of the year. Investors are focused on the company’s fiscal 2026 third-quarter results, expected in January. British financial firm Wise Goldman says British financial firm Wise is a “long-term cross-border payments winner with best-in-class technology and infrastructure” and has 70% upside potential. Wise’s stock price fell 8.5% from October to November after announcing its first-half fiscal year 2026 results. The company’s stock price has fallen 20% since the beginning of the year. Consensus margin decreased due to higher operating expense plans and one-time costs associated with the dual listing plan in the US. “We believe the company is investing for future growth and remain positive on a solid structural growth story with multiple upside drivers,” Goldman analyst Mo Moawala wrote in a Goldman note. Analysts are focused on the fiscal third quarter 2026 trading update to be released in January.
