Goldman's Monthly Update to European Conviction List

Goldman's Monthly Update to European Conviction List

• Each month regional directors at Goldman select equities they like and add to localized baskets. These are not ratings and are not representative of the analyst's investment rating.

The analyst comments "We add ING Groep NV, LVMH Moet-Hennessy Louis Vuitton and Atlas Copco to the Conviction List while removing BNP Paribas, Rio Tinto Plc, Volvo Group, Flughafen Zurich and Fresenius Medical Care. ING: Sizeable exposure to German fiscal spend and improving NII should help ING turn around recent underperformance and re-rate, according to Chris Hallam. He estimates ROTE will increase by 2pps to 15% by 2027E supporting c12% distribution yield. LVMH: Louise Singlehurst thinks that investors should look through Q2 softness and Buy into LVMH as a clear winner in the next luxury upcycle, and she sees asymmetric risk reward where the stock is currently trading (+69%/-5%, respectively). She sees some emerging catalysts including a new Dior Creative Director with a strong track record and the LV beauty launch to support footfall. Atlas Copco: Daniela Costa expects a recovery in orders supported by US reshoring / semis towards end of 2025, and is one of the few names across her space where she sees upside risk to estimates (albeit modest). In addition, she views Atlas Copco as one of the more resilient names in the sector against a backdrop of macro uncertainty given high after-market exposure and high ROIC, and her expectations for a special dividend at year-end should provide additional support."

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