Globaltrans, Taiwan Semiconductor Manufacturing Company, Alphabet, Palo Alto Networks and Sovcomflot were among the top five best-performing ideas, yielding between 13.8% and 49.6% as of 13 June 2023.
In fifth place were receipts of Globaltrans, one of the largest rail freight operators in Russia and the CIS, which has yielded 13.8% to investors since 17 April 2023. The freight carrier’s capitalisation was positively affected by the positive dynamics of freight rates in the open wagon segment, growth in freight turnover and loading on the Russian Railways network, as well as long-term service contracts with the largest Russian companies in the Pipeline. The target price for Globaltrans’ receipts is RUB 601, with an upside balance of 18.7% as of April 2024.
Since the issue on 25 April 2023, the trade idea to buy receipts of chipmaker Taiwan Semiconductor Manufacturing Company has provided investors with a 26.5% yield. The rise in the company’s stock is linked to a boom in generative AI, for which it manufactures chips using the most advanced 4nm process. “After the stock hit $98, the target price was raised to $115,” the research notes.
In third place is Alphabet shares, which have shown a 27.8% return since February 10, 2023. The IT giant’s undervaluation compared to peers and strong Q1 2023 reporting were drivers of Alphabet’s share price, the study notes. We maintain a long-term positive view on the stock, but the current market valuation of the company is close to fair, and therefore there is little upside potential on the short horizon.
“The Palo Alto Networks, a cybersecurity services company, received the silver medal for its 6-month earnings call with a 32.4% return. The securities were boosted by a strong report for the third quarter of fiscal year 2023, but the strongest driver is the fact that Palo Alto Networks was included in the calculation of the S&P 500 index from June 20. This will provide an inflow of funds into the stock through investment funds echoing the dynamics of the index in their portfolios. According to Finam analysts, the leader in the IT security market will continue to grow faster than the industry over the next 1-2 years. The previously set target price for Palo Alto Networks shares will be updated upwards in the near future.
Shares in Sovcomflot, Russia’s largest shipping group, were the leader in terms of returns – since the investment was offered on 5 April 2023 they have delivered a return of 49.6% to investors. The catalysts for Sovcomflot shares were Russian oil exports to Asia at high tariffs, an increase in LNG shipments amid a ban on pipeline gas supplies from Russia, strong financial performance for 2022 and the payment of dividends. Meanwhile, the paper has a target price of RUB 84.2, with potential of around zero.