Goldman Sachs Names European Stocks with Potential Upside of Up to 143%

Goldman Sachs has released its updated European Conviction List, Directors' Cut for 2027, featuring six high-conviction equities with projected returns exceeding 70%. The list includes four new additions: Solaria, Straumann, Scout24, and IMCD. These companies boast strong pricing power, secular growth tailwinds, and 'meaningful' valuation discounts.

Solaria, a Madrid-based solar and wind operator, enters the conviction roster with a €25 target, indicating a robust 52% potential upside. The company's ability to bundle land, grid connectivity, and power generation into multi-year data center agreements provides a powerful growth catalyst. Goldman Sachs strategist Alberto Gandolfi believes a recent valuation retreat offers an attractive entry point.

Straumann, a Zurich-listed dental implant innovator, trades near decade-level valuation lows at 24x next-twelve-month earnings. The company earned a CHF125 price target, implying a 38% rally. Goldman Sachs's senior analyst Richard Felton points to reaccelerating sales velocity and narrowing losses in its orthodontics division.

Scout24, the operator of Germany's dominant digital property portal ImmoScout24, commands a €108 price target, representing a dramatic 64% upside potential. The firm's massive addressable market drives rapidly expanding adoption of its Living+ subscription package. Goldman Sachs's analyst Adam Berlin highlights Scout24's deep proprietary data ecosystem and embedded network effects as robust competitive moats.

IMCD, Rotterdam's specialty chemical distributor, rounds out the additions with a €133 price target, targeting about a 40% total return from current levels. The company's specialized formulation services and high-value product portfolio grant it superior margin protection and pricing power.