Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list

The team at Goldman Sachs has just updated its highly coveted conviction list for the Asia-Pacific (APAC) region.

These are the companies that the broker is most bullish on and expects to outperform.

There have been four new additions to the APAC list this month, with two making exits.

While the majority of its conviction list picks come from elsewhere in the region, one of the new additions is an ASX 200 tech stock.

That tech stock is cloud accounting platform provider Xero Ltd (ASX: XRO).

What is the broker saying about this ASX 200 tech stock?

Goldman has added Xero to its conviction list with a buy rating and $152.00 price target. This implies approximately 12% upside for investors from current levels.

It explains its bullish view on Xero as follows:

Xero is a Global Cloud Accounting SaaS player, with a particular focus on its core 3X3 markets – accounting, payroll and payments in Australia, the US & UK. Kane believes Xero, with its refreshed management team, is very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Following the company’s pivot to profitable growth and corresponding earnings ramp, he sees an attractive entry point into a global growth story, with Xero his preferred large-cap technology name in ANZ.

Other ASX 200 stocks that are on the APAC conviction list are rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and supermarket giant Woolworths Group Ltd (ASX: WOW).

For Lynas, the broker has a buy rating and $7.40 price target, which offers potential upside of 19%.

As for Woolworths, it has a buy rating and $40.40 price target on its shares. This suggests potential upside of approximately 23% for investors.

The post Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why Core Lithium, Life360, Syrah, and Xero shares are jumping today

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/stDUG1v