Goldman Sachs has revised its top European stock picks for August, emphasizing two companies with remarkable upside potential. Ceres Power, a U.K. fuel cell developer, is projected to have a 168% upside, despite a 31% decline in July due to investor concerns about supply chains and AI demand.
Analysts view this dip as a buying opportunity, citing the company's scalable licensing model and its potential to capitalize on data center growth. Rheinmetall, a German defense company, is also highlighted with a 102% upside, benefiting from a strong second-quarter earnings report and Europe's rearmament efforts.
Other notable mentions include BT Group and DSV, both with a 64% upside, driven by fiber monetization and AI integration, respectively. ASML, a Dutch semiconductor firm, is newly added to Goldman's list with a 52% upside, attributed to its diversified revenue base and unique product positioning in the semiconductor value chain