Stuck for an idea where to put that last bit of SIPP allowance money, fear not as UBS has done the leg work and come up with a list of European ‘conviction’ buys (and sells).
Focusing just on the UK, seven 'buys' are put forward by the Swiss bank, all of which it said rated the highest composite score for their discount to UBS’s price target, correlation to the dollar, correlation to China’s manufacturing index, sector weighting and a ‘style factor‘ score.
Sector-wise, banks should benefit from rising yields while consumer durables firms are again tipped to show their strong pricing power plus will gain from China reopening.
In no ranking order, the buys are big four bank Lloyds, everyone’s favourite miner Endeavour, product tester Intertek, households goods group Reckitt Benckiser, power generator SSE, supermarket Tesco and Premier Inn chain Whitbread.
Among the sells, capital goods is the least favoured sector said UBS and features heavily among the European list of unfavoured stocks.
As engineering/manufacturing is less prevalent in the UK the list is more widely spread for the London listees.
On a company basis, miner Anglo American, sundries maker Bunzl, housebuilder Persimmon, accountancy specialist Sage, engineer Smith & Nephew and consumer giant Unilever are all 'conviction' sells.