Barclays said the outlook for the stock market looks “good” heading into 2025 as central banks cut interest rates and the global economy remains resilient. “Given limited valuation improvements in the frothy part of the market, global equities may struggle to deliver outsized risk-adjusted returns again in 2025,” the investment bank analyst wrote in a Nov. 11 note. “But compared with bonds, cash and credit They remain favored by comparison, which the bank named “an Overweight stock that our analysts have high confidence in 2025 and see value in holding.” Here are three of Barclays’ top picks with upside potential of over 35%: Shell Barclays is bullish on Shell shares and has a price target of £36 ($45.60) on the stock, giving it an upside potential of around 40% potential. The investment bank describes the oil and gas giant as “a compelling stock to consider in 2025 due to its strong operating momentum, strong cash flow generation and attractive shareholder returns”. “Shell will deliver value and momentum through 2025,” the analysts wrote, adding that its shares looked undervalued. Looking ahead, they expect the company’s free cash flow to reach $23 billion, “leaving plenty of room to cover dividends and buybacks.” Shell’s shares are listed on the London Stock Exchange and trade under American depositary receipts (ADRs). Form trades in the United States under the symbol SHEL. AstraZeneca In the pharma space, Barclays is betting on AstraZeneca. “We believe now is a compelling entry point for AstraZeneca as 2025 looks set to be a year of breakout catalysts,” the analysts explained. Those catalysts include the company’s 2030 announcement in May The revenue target was $80 billion, about $10 billion higher than expected at the time. AstraZeneca’s shares are listed on the London and Stockholm stock exchanges and trade in the United States as American Depositary Receipts under the ticker AZN. They are currently trading at about three times their five-year average, Barclays analysts said. “Given our expectations for core earnings per share growth, we think this is a very attractive valuation.” The investment bank has a target price of 14 pounds for AstraZeneca, implying an upside of about 41.6% potential. BE Semiconductor Industries Barclays’ list also includes semiconductor equipment supplier BE Semiconductor Industries, which the company said will benefit from “industry-wide expansion into advanced packaging.” Besi is a market leader in advanced packaging that improves wafer efficiency and performance. Analysts expect BeSi to “deliver strong growth in 2025 and have bright medium-term growth prospects” due to its “dominant market position in hybrid bonding and the potential to expand into thermocompression bonding.” Analysts noted that Dutch shares trade at a premium compared with peers but said the valuation was reasonable. BE Semiconductor Industries’ shares are listed on Euronext Amsterdam and trade in the United States as American Depositary Receipts (ADRs) under the symbol BESIY. Barclays has a price target of 160 euros ($169.50) on the Amsterdam-listed stock, giving it a potential upside of 44%. —CNBC’s Michael Bloom contributed to this report.
