Jefferies has picked out Computacenter PLC (LSE:CCC) and Plus500 Ltd (LSE:PLUS) as two London-listed stocks that could surprise investors positively as companies report first-half results over the coming weeks.
The broker named the pair among eight European companies it expects to beat market expectations, alongside two continental names it thinks could disappoint.
Computacenter, the technology reseller and services group, is one of Jefferies' preferred ways to play spending on artificial intelligence.
The broker described it as a "picks and shovels" bet, meaning it profits from supplying the industry rather than competing directly in it.
Jefferies said the company is exposed to two of the strongest areas of demand in global technology: United States corporate infrastructure and investment by the largest cloud computing providers.
The bank noted that Computacenter's American business has grown from 4% of group profits in 2018 to 39% last year.
It also pointed to scope for the company to improve efficiency, with management aiming to lift the share of gross profit converted into operating profit from around 24% towards 30%.
Jefferies recently raised its price target on the stock to 5,000p and rates it a 'buy'. The shares are currently changing hands for 4,350p.
A second-quarter trading update is due in July.
On Plus500, the online trading company, Jefferies sees room for an upgrade to full-year guidance when the group reports on 13 July.
The broker argued that market forecasts look too cautious after a strong start to the year and choppy trading conditions in the second quarter.
Volatility across interest rates, energy and geopolitics tends to encourage clients to trade more, supporting revenues.
Jefferies drew a read-across from rival CMC Markets, which raised its own guidance at the end of June on the back of high trading volumes.
The broker also pointed to longer-term growth drivers, including extended trading hours and expansion into prediction markets, where users bet on the outcome of future events.
Jefferies estimates sit about 6% above consensus. It rates Plus500 a buy with a 5,350p price target, against a share price of 4,960p.
The bank also flagged AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) among its potential winners, citing two clinical trial readouts due in July and August.
A positive result from its CARDIO-TTRansform heart drug trial could, in Jefferies' view, unlock a multi-billion dollar opportunity and strengthen the company's cardiometabolic drugs franchise.
The broker rates the pharmaceuticals group a 'buy' with an 18,000p price target.
