Shell, Besi, AstraZeneca in Barclays' 14 high conviction European stock ideas
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SHELL, BESI, ASTRAZENECA IN BARCLAYS' 14 HIGH CONVICTION EUROPEAN STOCK IDEAS
A regime change for the global economy is on the horizon with Donald Trump's presidency, say Barclays equity strategists, who have come up with a list of 14 high conviction European stock picks for 2025.
Looking forward, they say global equities may struggle to deliver outsized risk-adjusted returns again in 2025, but are still looking like a better prospect than bonds, cash and credit.
Cyclicals and value should work better than bond proxies under reflationary policies, while Europe remains under stress due to tariff risk, weak China growth and sluggish domestic recovery, they add.
On the other hand, "Cheap valuations, lower positioning, a weaker euro, and potential for reforms in Germany and peace in Ukraine may improve the asymmetry for Europe," they say, noting that a high Trump risk premium is already being baked in U.S. stocks.
Irrespective of this backdrop, they highlight fourteen overweight-rated names where Barclays analysts have high conviction in 2025 and see value on an individual stock basis.
These stocks have an average potential upside of 25% according to Barclays.
They are (listed in order of Barclays' estimated upside): Shell, Besi, AstraZeneca, IAG, Anglo American, Spectris, SBM Offshore, Unibail, Schneider Electric, Ferrari, NatWest, Saint-Gobain, Hermes and Zurich Insurance.
(Lucy Raitano)
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