Goldman Sachs has upgraded its recommendation for Taiwan stocks, and says it “looks good under the hood.”

The benchmark Taiex has taken a beating in recent weeks, and is leading losses among major Asia-Pacific markets so far in May, according to calculations by CNBC.

The Taiwan stock market has been under pressure, after the island was hit by a resurgence of Covid-19 infections. Prior to the latest wave, Taiwan was widely applauded internationally for its success in containing the coronavirus without a full lockdown.

But Goldman Sachs’ chief Asia-Pacific equity strategist Timothy Moe is not worried.