Goldman Sachs has included four new stocks in its October 'Conviction List – Directors' Cut', which identifies key buy-rated companies in Europe.
The additions are Solaria, a Spanish renewable energy firm, with a price target of €25 ($28) indicating a 52% upside; Straumann, a Swiss dental implant manufacturer, with a target of CHF125 ($151) suggesting a 38% upside; Scout24, a German online real estate platform, with a target of €108 ($121) implying a 64% upside; and IMCD, a Dutch specialty chemicals distributor, with a target of €133 indicating a 40% total return potential.
The bank also removed Naturgy, Norsk Hydro, and Smith & Nephew from the list. Notably, six stocks on the list have been assigned an upside of over 70%, including Rheinmetall, with a projected upside of 143%, and Adyen, with 111%. Analyst Alberto Gandolfi emphasized Solaria's potential, citing its progress on EBITDA guidance and favorable market conditions for data centers and battery storage.
Richard Felton pointed out that Straumann's stock is trading near historic lows, despite growth prospects in China, while Adam Berlin highlighted Scout24's strong market position and subscriber growth potential. Suhasini Varanasi noted IMCD's resilience amid supply chain challenges and its focus on specialized chemicals, which should enhance profitability.
Overall, these updates reflect Goldman Sachs' confidence in these sectors and the potential for substantial returns for investors