Goldman Sachs adds four European stocks as earnings catalysts emerge

Goldman Sachs expanded its European Conviction List for October, adding Solaria, Straumann, Scout24, and IMCD as stocks poised to benefit from earnings catalysts. The broker removed Naturgy, Norsk Hydro, and Smith & Nephew from the list. Solaria's appeal lies in its solar business outlook, with Goldman's analyst Alberto Gandolfi noting a potential growth area in data centers and energy storage.

Straumann is seen benefiting from a strong recovery in China and improved profit margins, while Scout24's expansion of products could lead to growth in private subscribers. IMCD could be nearing a turning point in volumes, and IMCD's specialized product mix should help maintain better prices than anticipated. The bank kept Trelleborg on the list with a Buy rating, citing an anticipated 20% upside.

Goldman revised its three-quarter 2026 sales estimate for Trelleborg downwards by 50 basis points but maintained its adjusted EBITA forecast. The bank also upgraded BMW to a Buy following its Capital Markets Day, predicting a 48% upside and emphasizing the automaker's target of an 8%-10% EBIT margin. Iberdrola was upgraded to a Buy from Neutral, with a price target raised by 19% to €25, due to expected double-digit growth through 2031.

AJ Bell was upgraded to a Neutral from Sell due to improved valuation and better visibility on fee-related earnings. Vallourec was retained as a Buy, despite a lower earnings forecast, reflecting its exposure to the Middle East.