Goldman Sachs Boosts European Conviction List with Four High-Conviction Equities

Goldman Sachs has updated its European Conviction List, highlighting key investment opportunities across the continent heading into 2027. The list's three-year anniversary marked a strategic shift toward companies boasting strong pricing power, secular growth tailwinds, and meaningful valuation discounts.

The Wall Street titan added four high-conviction equities while rotating out former favorites Naturgy, Norsk Hydro, and Smith & Nephew. Six picks with projected returns exceeding 70% led the list, including defense giant Rheinmetall (up to 143% upside) and fintech titan Adyen (111%).

Madrid-based solar and wind operator Solaria entered the conviction roster with a €25 target ($28), signaling a robust 52% potential upside. The clean energy pioneer stands to benefit from stabilizing hydro generation and elevated gas prices heading into late 2026, thanks to its ability to bundle land, grid connectivity, and power generation into multi-year data center agreements.

Zurich-listed Straumann offers investors a rare deep-value setup within restorative dentistry. Trading near decade-level valuation lows at 24x next-twelve-month earnings, the dental implant innovator earned a CHF125 price target ($151), implying a 38% rally. Goldman Sachs's senior analyst Richard Felton points to reaccelerating sales velocity, narrowing losses in its orthodontics division, and operational recovery across Chinese markets.