While it expects the pan-European Stoxx 600 index to perform well this year, it has also identified single-company opportunities that it believes will outperform.
Among them is the British Airways and Iberia owner IAG (LON:IAG). UBS’s analyst has this to say: “We think that IAG has restructured, enhanced its liquidity and is well-positioned to benefit from traffic recovery.”
Also on the list are the Oxford vaccine maker AstraZeneca (LON:AZN), builder Berkeley Group Holdings (LON:BKG), credit checker Experian (LON:EXPN), insurer Prudential (LON:PRU), consumer giant Reckitt Benckiser (LON:RB.), and oil major Royal Dutch Shell (LON:RDSA).
“UBS European Equity Strategists see 11% upside to the Stoxx 600 to year-end, driven by 50% year-on-year earnings per share growth in 2021 and 14% in 2022 link,” the Swiss banks said in a note to clients.
“This, combined with elevated volatility, creates significant single-stock opportunities.”