Investing.com -- Goldman Sachs added Solaria, Straumann, Scout24 and IMCD to its European Conviction List for October, while removing Naturgy, Norsk Hydro and Smith & Nephew, the broker said in a note dated Thursday.
The broker did not give reasons for the removals, while its analysts cited improving earnings prospects, valuation and potential for stronger demand as reasons for the new additions.
For Spanish renewable energy company Solaria, Goldman analyst Alberto Gandolfi said the market was underestimating improvements in the company's core solar business as pricing strengthens. He also pointed to potential growth from data centres and energy storage.
The shares have recently sold off following proposed legislation covering data centres in Spain, which Goldman said had created an attractive risk-reward setup.
Straumann is expected to benefit from a recovery in sales, helped by improving inventories in China and stronger profit margins, analyst Richard Felton said. He added that the dental equipment maker's valuation was close to its lowest level in nearly a decade.
For Swiss online marketplace Scout24, analyst Adam Berlin said new products could support growth in private subscribers, putting his estimates above market expectations.
He also sees potential for the company to return more cash to shareholders than expected.
IMCD could be approaching a turning point in volumes, while its more specialised product mix should help prices hold up better than expected, analyst Suhasini Varanasi said. She expects improving economic data to provide further support for the chemical distributor.
Goldman said additions to or removals from its Conviction Lists do not change its underlying investment ratings.
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Elsewhere, Goldman kept Swedish engineering group Trelleborg on the list with a Buy rating and saw 20% upside.
A pre-close call indicated that project revenue at its Industrial Solutions business would be more heavily weighted towards the fourth quarter than Goldman had expected, pointing to weaker third-quarter margins but broadly unchanged full-year 2026 EBITA margins.
The bank cut its third-quarter 2026 sales estimate by 50 basis points and adjusted EBITA forecast by 140 basis points.
However, its forecasts for adjusted EBITA in the third quarter, 2026 and 2027 remain above consensus.
Goldman retained a "buy" rating on BMW following the automaker's Capital Markets Day, seeing 48% upside.
BMW reaffirmed its target of an 8%-10% EBIT margin and outlined measures aimed at improving profitability, including plans for around 40 Neue Klasse models by the end of 2027, savings across its €80 billion purchasing base and the wider rollout of its software-defined vehicle platform.
Goldman upgraded Iberdrola to "buy" from "neutral" and raised its price target by 19% to €25 from €21, citing expected double-digit growth through 2031.
The bank also upgraded AJ Bell to "neutral" from "sell" following recent weakness in the shares, saying its valuation was now closer to the average for listed platform peers.
Goldman said the company could benefit from better visibility on fee-related earnings and an improving environment for private-market exits.
Goldman remained "buy"-rated on French steel tube maker Vallourec, which trades at about a 40% discount to Tenaris on an enterprise-value-to-EBITDA basis.
However, its earnings forecasts are below market expectations for the second half, reflecting Vallourec's greater exposure to the Middle East and potential near-term pressure from disruption around the Strait of Hormuz.
Original Article
GS adds four European stocks to conviction list as earnings catalysts emerge
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