Goldman just added these 3 European stocks to its flagship buy list
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Goldman Sachs equity analysts added three new names to its European Conviction List, a selection of stocks the investment bank expects to outperform.
Among the new additions are Adyen (AS:ADYEN) (OTC: ADYEY), DSV (CSE:DSV) (OTC: DSDVY), and Ermenegildo Zegna NV (NYSE:ZGN).
In the payments space, Goldman analysts see Adyen’s offering “as amongst the best-in-class,” with the company “entering a sweet spot of top-line growth and margin expansion.”
“Adyen is the clear market leader in high functionality, full stack, global multi-channel offers with its single, fully integrated platform,” the broker’s note said.
Analysts expect Platform growth in particular to be an incremental driver in future years given it is the only payments player providing ‘Enterprise level’ capability to SMBs to manage rising complexity.”
DSV, meanwhile, has witnessed a mostly flat stock market performance in the past 12 months after being impacted by negative earnings growth after a cyclical peak in 2022.
However, after seven consecutive quarters of EBIT decline, analysts anticipate a positive inflection from the second quarter of 2024, “supported by a cyclical improvement in Air and Sea volumes” and “stabilizing gross profit yields.”
“Analysts expect inorganic growth remains a key source of upside optionality with recent management meetings emphasizing that M&A remains a key priority,” Goldman said in the note.
As for the final addition
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