Given the “range of recent volatility in equity markets,” Goldman Sachs advises investors to consider specific strategies when trading European markets. The investment bank analyst wrote in a May 23 research note that this move follows the recent market rebound and is expected to prove effective “until inflation momentum becomes more negative.” Despite losses over the past few days, the pan-European Stoxx 600 index is up about 10.7% so far this year and about 18.6% last year. Looking ahead, those looking for opportunities in the region and “wanting to take a defensive stance” can look to Goldman Sachs’ list of Buy-rated stocks that “offer higher relative risk-adjusted upside.” Here are two such stock ideas that are also on Wall Street banks’ belief lists. Air Liquide Goldman Sachs analyst Georgina Fraser is optimistic about French chemicals company Air Liquide and believes the company is “in the best position from a supply-side perspective.” She noted that its competitiveness is largely due to “strong market share, a highly consolidated market and higher barriers to entry.” Fraser added: “These indicate that Air Liquide’s markets are unlikely to be disrupted and are a key driver of the company’s ability to sign long-term take-or-pay contracts with customers, which provides strong growth visibility.” Air Group’s shares are listed on Euronext Paris under the ticker AI-FR. It also trades on the OTC market in the United States under AIQUF. Its Paris-listed shares have gained about 13.2% in the past 12 months. Goldman Sachs’ 12-month price target for the stock is about 23.6% higher than 223 euros ($242.10). Bureau Veritas Another stock on Goldman’s list is French company Bureau Veritas. Known for its laboratory testing, inspection and certification services, analyst Suhasini Varanasi noted that the company’s investments in long-term themes such as energy transition, energy security and sustainability are expected to drive it. Growth, “Given the first-mover advantage, it is growing faster than its peers.” BVI shares trade on Euronext Paris under the symbol BVI – FR. It also trades in the First Trust International Developed Capital Strength ETF (weight 2%) and the FlexShares International Quality Dividend Defective Index ETF (weight 0.8%). BVI shares have risen approximately 12.6% in the past 12 months. Goldman Sachs gave the stock a 12-month target price of 37 euros, an increase of nearly 20%. —CNBC’s Michael Bloom contributed to this report.
