Goldman adds 4 new names to its favorite stocks list — including a 143% upside defense call
Goldman Sachs has added a Spanish renewable energy stock, a Swiss dental implant manufacturer, a German online real estate search platform and a Dutch specialist chemicals company to its latest European “Conviction List – Directors’ Cut” stock picks list. The monthly list charts Goldman’s key buy-rated companies in the region for October. The four new additions are Solaria , Straumann , Scout24 and IMCD . The bank also removed three stocks — Naturgy , Norsk Hydro and Smith & Nephew — from its latest breakdown. Six stocks in total have been assigned an upside of more than 70%. These include German defense giant Rheinmetall , which the bank sees having upside of up to 143%, while Goldman assigned Dutch e-commerce and payment processing company Adyen a 111% upside. Solaria Goldman has given Solaria — which designs and installs solar, thermal, photovoltaic and wind energy plants — a 25 euro ($28) price target, implying a 52% upside. SLR-ES YTD mountain Solaria. The Madrid-headquartered company has already delivered on about 65% of its full-year EBITDA guidance, while normalized hydro output and firmer gas prices should support the second half, Goldman said, adding that the recent sell-off in the stock pointing to “an attractive opportunity, with valuation appearing largely de-risked.” Analyst Alberto Gandolfi sees data centers and battery storage as two key positive catalysts, particularly if Solaria can bundle land, grid access and energy into long-term data-center contracts, which he said could deliver high-teens returns. Straumann Switzerland’s Straumann specializes in dental implants. The Zurich-listed stock — which Goldman said has been among the faster-growth names in the restorative dentistry space —currently trades close to decade lows relative to its historic valuation, at 24 times its next-12-month earnings. STM.N-CH YTD mountain Straumann. Goldman has a CHF125 ($151) price target, implying 38% upside, with analyst Richard Felton highlighting a pick-up in sales growth and improving business conditions in China. He also expects losses in its orthodontics business to narrow. But Felton acknowledged multiple potential headwinds facing Straumann, including softening U.S. demand for dental procedures amid rising living costs, and uncertainty in China following government price reforms. Scout24 Goldman has a 108 euro ($121) 12-month price target on Scout24, implying 64% upside for the Munich-headquartered digital property-search platform. The company, which operates ImmoScout24 in the German and Austrian housing markets, is expected to see strong growth in private subscribers, which account for around 20% of total revenue, boosted by new products such as deposit guarantees. G24A-FF YTD mountain Scout24. Goldman analysts noted that some 21.7 million German households live in rented accommodation, which they said offers Scout24 a sizeable potential market for its Living+ product suite. Meanwhile, a strong position in the German real estate ecosystem and access to proprietary data provide “meaningful moats” against competition from AI and large-language model summaries. Analyst Adam Berlin expects Scout24 to meet its target of 700,000 private subscribers by 2028, ahead of market expectations. He also highlighted profits improving as revenue grows faster than costs, while lower debt could free up cash for share buybacks and keep the company an attractive target for bidders amid rising M & A activity in the sector. IMCD IMCD, a specialty chemicals distributor, is supported by ongoing oil price inflation and supply chain volatility, which the Rotterdam-headquartered company can fully pass on to customers. Analyst Suhasini Varanasi said the company’s focus on more specialized, higher-value chemical ingredients means the resulting boost to profitability and margins is likely to prove stickier than in the commodity chemical sector, and should better insulate IMCD from Chinese competition near-term. IMCD-NL YTD mountain IMCD. Coupled with IMCD’s additional services, such as formulation work for customers, this is expected to help boost profitability, with EBITA margins rising from 10.4% in 2025 to an estimated 27% in 2027. Goldman has a 133 euro 12-month price target and a total return potential, over the period, of 40%.
