After a surge in interest in chipmaker Nvidia – with its shares posting an astronomical 200% rise in the past 12 months – investors appear divided over whether to buy into the stock. However, one asset manager is happy that he does not own the chipmaker. “I bought Nvidia in the early days and exited my position with a decent profit of 300%. Of course, the stock has now risen further to over $1,000, but I’m glad I was able to make a profit at a price I’m happy with “Druba Jyoti Sengupta told CNBC Pro earlier this month. The CEO of Wrise Private Middle East, which serves ultra-high-net-worth and high-net-worth individuals in Asia, the Middle East and Europe, said he instead likes three different stocks from around the world. Adobe At the top of Sengupta’s list is Adobe . After a difficult time earlier this year, the stock is seeing renewed interest following second-quarter earnings results that exceeded analyst expectations. Shares of Adobe jumped 17% following the earnings release last week and are up about 7% over the past 12 months. Sengupta sees promise in the software company given the potential of generative AI not only for text but also for photos in the medium to longer term. “The market doesn’t see much potential in Adobe because Nvidia is making all these big future predictions and the markets love that. But Adobe offers great opportunity as the largest photo software company,” he added. According to FactSet data, 34 of the 43 analysts covering the stock give it a buy or overweight rating, 7 have a hold rating and two have a sell call. Their average price target is $611.20, which gives a potential upside of 16.3%. Harley-Davidson In the luxury goods space, Sengupta has his eye on Harley Davidson. “I live in Dubai and I am convinced that whatever happens, luxury stocks will always do well in the long term… Men are now becoming like women when it comes to luxury spending, especially on toys like Harley Davidson,” he said. Shares of the iconic motorcycle maker are down almost 6% in the past 12 months, but Sengupta says the shares are undervalued, making it a good time to buy. Of the 17 analysts covering Harley-Davidson, 8 give it a buy or overweight rating, while 9 have a hold rating at an average price of $42.96, according to FactSet data. This gives the upside potential of 32.1%. HDFC Bank In India, the asset manager is betting on financial firm HDFC, while the country – and the bank itself – prepares for growth. ‘The bank has a hugely diversified income stream, I think [it’s] currently the most valuable bank in the world,” he said. When asked how HDFC compares to competitors like ICICI Bank, Sengupta said the former’s management is “very stable with consistent leadership and that gives them a good reputation.” India’s National Stock Exchange and the BSE, and as an ADR in the US. The shares are also included in the Nifty India Financials ETF (15.6% weight) and iShares India 50 ETF (11.2%). The bank’s shares are up slightly more 1% in the past 12 months, but are showing signs of recovery. Of the 43 analysts covering HDFC Bank on FactSet, 38 have a buy or overweight rating on the stock at an average price target of 1,872.32 Indian rupees ($22.41). upside potential of 17.2%.
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Asset manager for the ultra-rich names three global stocks to buy
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