Goldman Sachs has refreshed its flagship European Conviction List – Directors’ Cut, adding four stocks it believes are positioned for outsized gains through 2027. The update, which coincides with the list’s third anniversary, removes Naturgy, Norsk Hydro, and Smith & Nephew, while introducing Solaria, Straumann, Scout24, and IMCD.
The bank’s revised roster highlights six names with projected upside exceeding 70%, led by Rheinmetall (143% potential) and Adyen (111%). The common thread among the new additions is a combination of strong pricing power, secular growth drivers, and what Goldman describes as “meaningful” valuation discounts.
Solaria: Clean Energy with Data Center Catalyst
Madrid-based Solaria, a solar and wind operator, joins the list with a €25 price target, implying roughly 52% upside. The company has already delivered about 65% of its full-year EBITDA target, and Goldman analyst Alberto Gandolfi sees a recent valuation pullback as an attractive entry point. Solaria’s ability to bundle land, grid connectivity, and power generation into multi-year data center agreements provides a high-return growth catalyst, supported by stabilizing hydro generation and elevated gas prices heading into late 2026.
Straumann: Deep Value in Dental Implants
Zurich-listed Straumann offers a rare deep-value opportunity in restorative dentistry. Trading near decade-low valuations at 24x next-twelve-month earnings, the dental implant maker has a CHF125 price target, implying a 38% rally. Goldman’s Richard Felton points to reaccelerating sales velocity, narrowing losses in orthodontics, and operational recovery in China. While softer US elective procedure spending remains a headwind, improving fundamentals and structural market-share gains make Straumann a “quality pick” for long-term portfolios.
Scout24: Digital Property Portal with Network Effects
Scout24, which operates Germany’s dominant property portal ImmoScout24, carries a €108 price target, representing 64% upside. The company benefits from a massive addressable market of 21.7 million German renter households and rapid adoption of its Living+ subscription package. Analyst Adam Berlin highlights Scout24’s deep proprietary data and embedded network effects as moats against AI disruptors. Accelerating top-line growth and disciplined capital allocation also position the firm for potential share buybacks.
IMCD: Specialty Chemicals with Pricing Power
Rotterdam-based IMCD, a specialty chemical distributor, rounds out the additions with a €133 target, implying about 40% total return. Unlike commodity peers, IMCD’s specialized formulation services and high-value product portfolio provide superior margin protection. Goldman’s Suhasini Varanasi projects EBITA margin expansion from 10.4% in 2025 to 27% by 2027. This value-add model insulates the Dutch company from Asian low-cost competition, turning supply chain volatility into a sustainable profit driver.
The updated list reflects Goldman’s broader preference for companies with durable competitive advantages and visible growth trajectories, even as macroeconomic uncertainties persist. Investors should note that all four new additions have already performed well year-to-date, suggesting the market is beginning to recognize their potential.
This article is for informational purposes only and does not constitute financial advice.
