Goldman Sachs has updated its European Conviction List for July 2026, adding two new names—TGS ASA and Halma Plc—while removing three others. The list, which typically holds around 27 stocks, reflects the bank's highest-conviction buy calls over a 12-month horizon. The median upside to price target across the refreshed list stands at 29%, with a median 12-month return potential of 32%.
TGS ASA: Betting on Oil-Services Recovery
The most notable addition is TGS ASA, a Norwegian seismic-data company. Goldman Sachs set a price target of 180 NOK, implying roughly 40% upside from its June 30 close of 128.90 NOK. The bank's thesis centers on a structural underinvestment in oil and gas exploration. According to Goldman, reserve life has fallen by about 60% since 2013, while seismic vessel capacity has dropped roughly 70% over the same period. This supply-demand imbalance could drive increased demand for exploration data, benefiting TGS.
Goldman expects TGS's multi-client division to grow 19% year over year, well above consensus estimates of 8%. If realized, this could lead to both stronger earnings and a re-rating of the oil-services cycle. The addition underscores a broader theme of recovery in energy-services spending.
Halma: A Quality Compounder with Steady Upside
Halma Plc, a UK-based safety-technology group, offers a different profile. Goldman set a 5,010p price target, implying about 27% upside from its 3,934p close. The bank describes Halma as “one of the highest-quality, highest-return growth compounders with a proven track record.” Its exposure to safety, health, and environmental technologies provides a defensive growth angle, contrasting with the cyclical bet on TGS.
Together, the two additions highlight Goldman's dual focus: a cyclical recovery in oil-services and a pullback in a high-quality industrial name.
Removals: Profit-Taking and Repositioning
The three stocks removed from the list offer insight into Goldman's shifting views. Bayer was taken off after a 27.8% gain since its January 2026 inclusion, likely reflecting profit-taking amid improved sentiment around litigation risk. Anheuser-Busch InBev also exited after a 19.2% gain since June 2025, suggesting limited further upside after the rerating.
Deutsche Telekom's removal is more telling. The stock fell 15.1% since its October 2025 addition, indicating that the original upside case has weakened or that better opportunities now exist elsewhere.
Broader Market Context
The update comes as European benchmarks hit all-time highs, with the STOXX 600 and DAX recording weekly gains on rate optimism. For investors tracking high-conviction calls, the Conviction List changes offer a window into Goldman's sector preferences. The median upside of 29% across the list suggests the bank sees attractive risk-reward in select European equities despite broader market strength.
For related coverage, see our analysis of European Stocks Hit New Highs: STOXX 600, DAX Record Weekly Gains on Rate Optimism and Goldman Sachs: AI to Displace 15M US Workers Over Decade, But Job Creation May Offset Losses.
This article is for informational purposes only and does not constitute financial advice.
