Global markets may be feeling the pinch from volatility and macroeconomic uncertainty, but Barclays believes several large-cap stocks in Europe are doing well right now. In an Aug. 9 research note titled “Large, Liquid, and Popular,” analysts at the investment bank wrote that “not all recession indicators are flashing red.” “Summer markets are notoriously difficult Navigating, the latest round of volatility may have ripple effects in the coming days/weeks as the shedding may not be over yet, so price action may remain volatile while the US election may keep the market stable heading into the fall. They need to remain vigilant,” analysts said. Losses occur when financial institutions such as hedge funds close long and short positions. Barclays’ stance comes as the Stoxx Europe 600 index has fallen so far this month but has been rising since the start of the year. The benchmark has gained 8.1% so far this year. Barclays’ overweight sectors include financials, utilities, real estate and cyclicals, with a preference for technology, retail, aerospace/defense and chemicals. Here are three under-the-radar stocks that Barclays is betting on: DSV Barclays is bullish on Danish transportation and logistics company DSV, saying it expects strong growth in the second half of 2024. Factors “the profitability of the entire (DSV) division,” and expects cost savings to add approximately DKK 180 million ($26.4 million) to profitability. “We believe DSV’s organic strategy of gross profit expansion and above-market sales growth remains underappreciated,” he said, adding that about 40% of DSV’s gross profit comes from its top 200 customers. DSV’s shares are listed on Nasdaq Copenhagen and traded in the United States as American Depositary Receipts (ADRs). Barclays has a target price of 1,510 Danish kroner on the stock, predicting upside potential of about 20%. NatWest Group Barclays has described NatWest as one of the “preferred names” among European banks. That’s thanks to its “industry-leading EPS (earnings per share) momentum and continued earnings upside potential driven by best-in-class structural hedging tailwinds,” analysts Aman Rakkar and Grace Dargan said. They added that these factors not only offset the impact of lower interest rates but were accompanied by expected structural re-ratings driven by the UK government’s impending exit, easing of UK political risks and improving UK macro prospects. NatWest’s shares are listed on the London Stock Exchange and trade in the United States as American Depositary Receipts (ADRs). Barclays has a price target of 460 pence ($5.90) on the stock, giving it upside potential of about 36%. Groupe Renault French carmaker Renault is also on Barclays’ list, although its “share price is down -16% relative to -10% on SXAP performance” at the time of the report. Analysts Henning Cosman and Arya Ghassemieh continue to believe that “strong company-specific factors and near-term earnings resilience (absolutely and relative to consensus) are key positives for the (Renault) stock story.” “We have always liked the well-respected management team, its A strong track record of recent execution and a significantly improved product mix that has started to materialize with a strong volume and price mix and should continue to be a strong mix in 2024/25E,” they added. Renault’s shares trade on Euronext Paris and in the United States as American Depositary Receipts. The company’s shares are up more than 12% so far this year. Barclays has a price target of 60 euros ($65.80) on the stock, giving it nearly 50% upside potential. —CNBC’s Michael Bloom contributed to this report.
Barclays names 3 under-the-radar global stocks as a buy | Real Time Headlines
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