Goldman Sachs told clients to buy call options on a series of stocks the banks’ analysts love for 2026. The bank looked at stocks where the implied return from buying the options would exceed 50% if the analysts’ bullish target prices come true. “We see call buying as an attractive way to improve the potential risk-adjusted returns of implementing these views,” Goldman Sachs analyst John Marshall said Wednesday in a note to clients. A call option is a contract to buy a certain stock at a specified price at a date in the future. The gain from a call option would exceed the return on the stock alone, but involves greater risk than simply buying the stock because the contracts can expire worthless. Analysts made their picks from a list of more than 150 buy-rated stocks. They calculated implied returns for at-the-money calls with reference to a 12-month expiry date, assuming spot prices reached their price targets over the next year. Uber The rideshare application could gain ground, partially due to advancements in autonomous vehicles and its implementation of the technology, according to Goldman Sachs. Last year, Uber faced regulatory headwinds and issues with its plans to expands its electric-vehicle fleet, limiting the stock’s growth. However, shares could surge as Uber deepens its foray into AV technology, offering an opportunity to improve its margins. “Today, UBER has 18+ AV partnerships globally (incl. Waymo, May Mobility, Volkswagen, WeRide) and LYFT also has a number of partnerships (incl. Waymo, May Mobility, Nexar, Baidu),” Goldman Sachs analysts said in a note to clients last month. “We expect that more AV partnerships and expansion plans will be announced in the future, as AV operators have an incentive to partner with existing rideshare networks for demand generation and operational support.” Goldman Sachs has a buy rating on the stock and a price target of $126 on shares. Uber’s implied call return at expiry is 176%. Shares have jumped about 31% over the past 12 months. Roblox Roblox likely has more room to run as the interactive media landscape expands, according to Goldmans Sachs. The online game platform has seen its shares slip in recent months as it ups its spending on infrastructure and safety improvements. However, those changes could aid Roblox ahead of an expected increase in engaged players, Goldman Sachs analysts noted. “We see the company as a rising compounded growth company in the coming years against the shifting interactive entertainment landscape, creative/developer content landscape, media usage/engagement trends and monetization themes across our coverage,” Goldman Sachs analysts wrote in a note to clients dated Dec. 10. Goldman Sachs has a buy rating on the stock and a price target of $180 on shares. Roblox’s implied call return at expiry is 457%, the bank’s data shows. Shares are up 26% over the past year, but they have plunged roughly 38% over the past three months.
