Deutsche Bank Touts UK Shares as Top Picks Amid European Stock Market Volatility

Deutsche Bank has released its top picks for European stocks in the fourth quarter, featuring UK-listed shares Entain, British American Tobacco, ICG, and Coca-Cola HBC.

The broker highlighted various catalysts for growth among these companies, including online gaming expansion, buybacks, cash generation, and emerging market consumer demand.

Entain stands out as Deutsche Bank's preferred leisure and hotels stock, with a 'buy' rating and 914p price target. The company has recorded nine consecutive quarters of online growth and improving momentum in the UK, where its Ladbrokes and Coral brands have seen positive growth for 10 quarters.

Deutsche Bank also sees potential support from mergers and acquisitions activity around the gambling sector, forecasting free cash flow to exceed £500 million by 2028 as earnings improve, BetMGM distributions increase, and payments linked to its deferred prosecution agreement end.

British American Tobacco retains its place among Deutsche Bank's consumer staples selections, with a 'buy' recommendation and 5,100p target. The broker expects the tobacco group to return to sustainable growth while increasing the contribution from smoke-free products.