Goldman Sachs has overhauled its flagship European Conviction List – Directors’ Cut this month, spotlighting key investment opportunities across the continent heading into 2027.
Marking the list’s three-year anniversary, the Wall Street titan added four high-conviction equities while rotating out former favorites Naturgy, Norsk Hydro, and Smith & Nephew.
Highlighting six picks with projected returns exceeding 70%, led by defense giant Rheinmetall (up to 143% upside) and fintech titan Adyen (111%), the bank’s updated roster underscores a strategic shift toward companies boasting strong pricing power, secular growth tailwinds, and “meaningful” valuation discounts.
Here are four European names that made Goldman Sachs’s list in October.
Solaria
Madrid-based solar and wind operator Solaria enters the conviction roster with a €25 target ($28), signaling a robust 52% potential upside.
Having already satisfied roughly 65% of its full-year EBITDA target, the clean energy pioneer stands to benefit from stabilizing hydro generation and elevated gas prices heading into late 2026.
Goldman Sachs strategist Alberto Gandolfi believes a recent valuation retreat offers an attractive entry point.
Crucially, Solaria’s ability to bundle land, grid connectivity, and power generation into multi-year data center agreements provides a powerful high-return growth catalyst.
Straumann
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.
While macro headwinds – such as softening US elective procedure spending – persist, improving underlying fundamentals and structural market-share gains make Straumann stock a “quality pick” for long-term portfolios.
Scout24
Operating Germany’s dominant digital property portal ImmoScout24, Scout24 commands a €108 price target ($121), representing a dramatic 64% upside potential.
The firm’s massive addressable market – supported by 21.7 million German renter households – 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 against emerging AI disruptors.
Furthermore, accelerating top-line growth combined with disciplined capital allocation positions Scout24 as a prime candidate for balance-sheet-driven share buybacks.
IMCD
Rotterdam’s specialty chemical distributor IMCD rounds out the additions with a €133 price target, targeting about a 40% total return from current levels.
Unlike commodity chemical peers exposed to cyclical volatility, IMCD’s specialized formulation services and high-value product portfolio grant it superior margin protection and pricing power.
Goldman Sachs’s analyst Suhasini Varanasi projects IMCD’s EBITA margin will surge from 10.4% in 2025 to an impressive 27% by 2027.
This value-add business model insulates the Dutch company from Asian low-cost competition – transforming supply chain turbulence into a sustainable profit driver.
