Goldman Sachs Adds Three New Names to Its Conviction List, Led by a 77% Upside Call
Key Takeaways
- •Goldman Sachs added three new names to its European Conviction List – Directors' Cut for September, with one pick offering 77% upside potential.
- •The list includes Rheinmetall, Siemens, ASML Holding, HSBC, and CVC Capital Partners, with Rheinmetall assigned a 109% upside.
- •Rheinmetall's inclusion reflects the re-rating of European defence stocks driven by increased military spending since Russia's 2022 invasion of Ukraine.
- •ASML is Europe's most valuable technology company and holds a global monopoly in EUV lithography machines for advanced chipmaking.
- •The identities of the three newly added stocks and their target prices are available only to CNBC-TV18 Access members.
Goldman Sachs has added three new names to its favorite stocks list for Europe, with one standout call offering 77% upside potential.
The additions appear in the European "Conviction List – Directors' Cut," the bank's monthly compilation of its key buy-rated stock picks in the region for September. The list features prominent continental mainstays, including German defence giant Rheinmetall, to which Goldman assigned a 109% upside, as well as industrial conglomerate Siemens, Dutch semiconductor equipment maker ASML Holding, British banking group HSBC, and private equity firm CVC Capital Partners.
Rheinmetall's inclusion reflects the sharp re-rating European defence stocks have undergone since Russia's full-scale invasion of Ukraine in 2022 prompted governments across the continent to commit to sustained increases in military spending, with Germany in particular earmarking hundreds of billions of euros for defence and infrastructure. ASML, meanwhile, is Europe's most valuable technology company and holds a global monopoly in the extreme ultraviolet (EUV) lithography machines required to make the most advanced chips.
The "Directors' Cut" list is part of Goldman Sachs' equity research offering, highlighting stocks where the bank's analysts have the highest conviction in their buy ratings. Such lists are closely watched by institutional investors as an indicator of where major Wall Street research desks see the strongest opportunities in European equities. Goldman maintains comparable conviction lists for other regions, including the United States and Asia-Pacific.
Target prices and upside figures on such lists are analyst estimates tied to the bank's published research, and past performance or prior upside calls do not guarantee future results.
The full article, including the three newly added names and their target prices, is available to CNBC-TV18 Access members.
Source: CNNBC-TV18
