Daily Trading Pivot: Goldman’s Secret Formula for Riding Euro Market Volatility

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Unveiling High-Potential European Stocks: A Defensive Strategy for Volatile Markets

In the face of persistent market fluctuations, LA News Center has partnered with experts at Goldman Sachs to unravel a tactical investment strategy for investors seeking opportunities within European markets.

Defensive Positioning in Uncertain Times

Analysts at Goldman Sachs emphasize the potential for near-term volatility in equities, highlighting a need for a defensive stance. They recommend a specific approach to minimize risks, especially until inflation momentum shows signs of easing.

Pockets of Opportunity in a Volatile Landscape

Despite the recent downturn, the pan-European Stoxx 600 index remains positive, indicating growth potential. For investors seeking defensive entry points, Goldman has identified two compelling stock recommendations:

Air Liquide: A Resilient Giant

Goldman Sachs analyst Georgina Fraser deems Air Liquide as exceptionally well-positioned within the chemicals industry. Its solid market share, strong barriers to entry, and robust customer contracts contribute to its competitive advantage.

Air Liquide’s focus on key drivers, such as energy transition, energy security, and sustainability, positions it for significant growth.

Bureau Veritas: Leveraging Global Trends

Bureau Veritas, a renowned provider of testing, inspection, and certification services, is another top pick from Goldman.

LA News Center highlights its early mover advantage in addressing these critical trends, ensuring a brighter outlook than its peers. Its exposure to secular themes is anticipated to drive rapid expansion.

Investment Recommendations and Performance

Goldman Sachs presents the following buy ratings:

  1. Air Liquide (Ticker: AI – FR; AIQUF) with a 12-month price target of €223, potentially yielding a 23.6% upside.
  2. Bureau Veritas (Ticker: BVI – FR) with a 12-month price target of €37, offering a projected upside of nearly 20%.

Over the past year, Air Liquide has demonstrated resilience with a 13.2% gain in its Paris-listed shares. Bureau Veritas has also performed remarkably, with a 12.6% growth.

Conclusion

As markets navigate uncertain waters, investors are encouraged to consider Goldman Sachs’ defensive strategy for European markets. Air Liquide and Bureau Veritas, with their robust business models and growth potential, represent attractive opportunities for those seeking to mitigate risks and capture value in a volatile environment.