Goldman loves these 4 European stocks — one of which has 110% upside

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Goldman loves these 4 ********* stocks — one of which has 110% upside

Four U.K.-listed stocks — one of which was given 110% upside — are among Goldman Sachs’ ********* conviction list. The Wall Street bank is backing British stocks to diversify global portfolios after London-listed equities “proved resilient” even during the market correction in early August. While the S & P 500 fell by 5.85% in the first week of August, the FTSE 100, an index of the 100 largest London-listed stocks, outperformed by falling by only 2.4%. .FTSE .SPX 5Y line The investment bank said the FTSE 100 “can also provide good diversification from the concentrated and Tech-heavy S & P 500 .” “We continue to recommend FTSE 250 vs. MSCI World . We also like FTSE 100 for its low valuation, buyback, and diversification characteristics,” Goldman strategists led by Sharon Bell said in a note to clients on Sept. 2. Goldman’s bullish view is noteworthy given the U.K. stock market’s decade-long underperformance — its weight in the MSCI World index dropped from 5.3% in 2010 to a mere 2.2% currently. The bank named BT Group , Rolls-Royce , SSE and the London Stock Exchange as four “attractive” stocks, based on fundamental equity analysis. All four stocks are also traded over the counter in the ******* States. BT The Wall Street bank views telecom giant BT Group favorably, given the potential for fiber deregulation in the U.K. to drive earnings growth. Goldman Sachs suggested there is “scope for a doubling in the share price” based on improving free cash flow prospects. Rolls-Royce Rolls-Royce, the aerospace and defense company, was also highlighted for its strong free cash flow potential. The engine maker’s shares have risen by more than 365% since early 2023, when CEO Tufan Erginbilgic was appointed to lead a strategic turnaround at the company. Goldman projects significant shareholder returns, estimating “cumulative cash return to shareholders for [2024-2027 is estimated] at £10bn, which is c.25% of the current market cap.” SSE SSE, an energy company, is well-positioned to benefit from increased power network investment in the U.K., according to Goldman. The company owns power plants, electricity transmission and distribution networks in the country. Electricity consumption is expected to rise significantly thanks to growth in electric vehicles as well as data centers with artificial intelligence chips. The bank notes that SSE’s “leading capabilities vs. peers position it well to capture this investment growth.” LSEG Goldman says it believes London Stock Exchange Group has AI-related growth potential. LSEG owns Bloomberg-competitor Refinitiv, which has partnered with

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to enable AI in its products. The investment bank said the company “is at the start of a revenue acceleration” supported by increasing market share and expansion into new markets.

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#Goldman #loves #********* #stocks #upside

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