Goldman Sachs has refreshed its European "Conviction List – Directors' Cut" for October, adding four stocks — Solaria, Straumann, Scout24 and IMCD — and dropping three others. Six names on the list now carry upside of more than 70%, including a projected 143% gain for German defense company Rheinmetall.
Goldman Sachs added four new names to its European Conviction List – Directors' Cut for October: Spanish renewable energy firm Solaria, Swiss dental implant maker Straumann, German property platform Scout24 and Dutch chemicals distributor IMCD. The monthly list tracks Goldman's buy-rated picks across the region.
The bank also removed three stocks from the list — Naturgy, Norsk Hydro and Smith & Nephew. Six companies on the current list carry upside of more than 70%, among them Rheinmetall at up to 143% upside. Goldman assigned Adyen 111% upside.
Solaria targets a data-center pivot
Goldman set a 25-euro ($28) price target on Solaria, implying 52% upside. The Madrid company, which builds solar, thermal, photovoltaic and wind plants, has already delivered about 65% of its full-year EBITDA guidance. Analyst Alberto Gandolfi pointed to data centers and battery storage as catalysts, particularly if Solaria can bundle land, grid access and energy into long-term data-center contracts.
Straumann and Scout24 round out the additions
Straumann trades at 24 times its next-12-month earnings, close to decade lows relative to its historic valuation. Goldman's CHF125 ($151) target implies 38% upside, with analyst Richard Felton citing a pick-up in sales growth and improving conditions in China, though he flagged softening U.S. demand for dental procedures and uncertainty from Chinese government price reforms.
Scout24, which runs the ImmoScout24 property-search platform in Germany and Austria, carries a 108-euro ($121) target for 64% upside. Analyst Adam Berlin expects the company to reach 700,000 private subscribers by 2028, with lower debt potentially freeing cash for buybacks.
IMCD benefits from pricing power
IMCD, the Rotterdam-based specialty chemicals distributor, is supported by oil price inflation and supply-chain volatility that it can pass on to customers. Analyst Suhasini Varanasi said the company's focus on more specialized, higher-value chemical ingredients should make the resulting profitability boost stickier than in the commodity chemical sector and better insulate IMCD from Chinese competition near-term. Goldman expects EBITA margins to rise from 10.4% in 2025 to about 27% in 2027, with a 133-euro price target and 40% total return potential over that period.
Source: CNBC
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