Goldman Sachs Adds European Stocks to Conviction List with Bullish Outlook

Goldman Sachs has added four European stocks to its Conviction List for October. These additions include Solaria, Straumann, Scout24, and IMCD, while Naturgy, Norsk Hydro, and Smith & Nephew have been removed from the list without explanation.

The broker cited improving earnings prospects, valuation, and potential demand as reasons for adding the new stocks to its Conviction List. Analysts pointed out that Solaria's core solar business is seeing strengthening pricing, while data centers and energy storage could provide additional growth opportunities.

Straumann is expected to benefit from a recovery in sales due to improving inventories in China and stronger profit margins, according to analyst Richard Felton. He noted that the dental equipment maker's valuation is close to its lowest level in nearly a decade.

Scout24 may see growth in private subscribers supported by new products, leading to higher estimates than market expectations, said analyst Adam Berlin. Additionally, he sees potential for the company to return more cash to shareholders than expected.