Goldman names under-the-radar global stocks to buy — and says one could soar 80%
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Goldman Sachs has named several European stocks to buy that it expects to outperform the market — and that other investors could be missing. “Markets have grappled with balancing growth and inflation concerns [year to date],” the analysts led by John Sawtell stated in a July 10 research note. “From here, our strategists expect ‘fat & flat’ equity returns, constrained by high valuations and higher-for-longer rates. That said, we see scope for alpha opportunities across sectors.” Goldman listed a raft of “out-of-consensus buy ideas” for investors to consider. The bank is at least 2% above consensus on each stock in terms of 2023-2024 earnings per share, and said that less than 50% of other analysts are buy-rated on its picks. The list includes Norwegian hydrogen producer Nel , which Goldman says has potential upside of 80% to its 12-month price target. The bank described it as “one of the key beneficiaries of the clean hydrogen revolution.” Analyst Michele Della Vigna likes the stock for its strong growth outlook and focus on the North American market. Goldman also picked wind power company Vestas , saying its stock could rise by 48% over the next year. “[Analyst] Ajay Patel sees Vestas as the best-positioned company in his wind manufacturer coverage, set to benefit from rising wind installation demand, with strong fundamentals (cash flow generation, growth, balance sheet), owing to its geographical diversification and scale,” the bank’s note stated. Its other picks include Dutch bank ABN Amro and Swedish investment firm EQT . The bank gives both potential upside of 56%. It also chose chemicals company IMCD , with 57% potential upside, and drinks company Remy Cointreau , with 54% potential upside. In addition, Finnish telecommunications firm Elisa made the list, with Goldman saying it could rise 42% over the next 12 months, as well as audit company Bureau Veritas , with 48% potential upside. — CNBC’s Michael Bloom contributed to this report.
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