Investors now have some new reasons to like portfolio stocks Broadcom and Goldman Sachs. Deal King: Cotera has named Goldman Sachs as financial advisor for its $58 billion all-stock merger with fellow shale producer Devon. The deal is the largest in the energy space since Diamondback bought Endeavor Energy Resources for $26 billion in 2024, in which Goldman also had a small involvement. Goldman’s role in the Cotera-Devon merger has been a boon for its investment banking business, which accounted for 15% of total revenue last year. GS 1Y Mountain Goldman Sachs 1 Year After Goldman’s tumultuous earnings report last month, CEO David Solomon said, “M&A transactions often start a flywheel of activity across our franchises.” The continued trading news further confirms our original hypothesis regarding the stock’s rise of 7.6% year-to-date compared to the S&P 500’s gain of 1.5%. The firm initiated the position in late 2024 in anticipation of a recovery in the investment banking industry following Donald Trump’s presidential election victory. That’s exactly what we’re seeing. The club has a price target of $1,050 on Goldman and a rating of 2. This means that we will be the buyer if the price drops. Chip potential: Mizuho said it buys Broadcom’s recent exit due to the potential for multiple custom chip businesses, accelerating its revenue potential in the coming year. Broadcom stock has been struggling, down nearly 20% from its December high closing price and down about 3.6% this year. Mizuho analysts said in a note Sunday that the club, which owns MetaPlatform, is a potential $10 billion to $15 billion customer for Broadcom. AVGO 1Y Mountain Broadcom 1 Year As noted on Friday, Broadcom has benefited from Alphabet’s help in building Google’s tensor processing unit. Mizuho predicted that the average selling price of some of these TPUs could rise by 50% over the next few years. Analysts reiterated Broadcom’s buy-equivalent rating and price target of $480 per share, suggesting 44% upside potential around the current share price of $332. But the club wants to wait for further declines before upgrading Broadcom to an acquisition again. It is currently rated 2, which is equivalent to a hold. The target price is $425. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
