Goldman Sachs has added Deutsche Bank and Carlsberg to its latest European “Conviction List – Directors’ Cut” stock picks list. The monthly list outlines Goldman’s key buy-rated companies in the region for November. Three companies in Goldman’s latest key picks have been assigned a 12-month upside of more than 100%. U.K. fuel cell developer Ceres Power can deliver a 250% upside, according to analysts, while flatexDEGIRO , a Frankfurt-listed fintech and online brokerage, has potential upside of 112%. The bank also continues to favor German defense staple Rheinmetall , giving the stock a 2,100-euro (around $2,350) price target, implying a 102% upside. Meanwhile, the bank also removed three names — U.K. lender HSBC , British consumer healthcare stock Haleon and Amsterdam-headquartered CTP , Europe’s largest listed industrial and logistics property operator — from its latest list. Here are the investment bank’s latest additions: Deutsche Bank Goldman analysts said Deutsche Bank is now entering a “new era of profitability,” particularly in its corporate and private bank divisions. Chris Hallam, managing director and head of European financials research at Goldman, highlighted stronger revenue momentum, supported by the German government’s infrastructure spending, with key growth opportunities in defense and technology. Goldman also noted that HSBC’s exposure to high-risk U.S. commercial real estate has been cut by 40% since 2022, with 20% slashed within the last year. DBK-FF YTD mountain Deutsche Bank. Hallam said Deutsche — whose shares trade at 8.2 times expected earnings, below the wider banking sector’s 9.6 times — could unlock about 2 billion euros ($2.24 billion) worth of savings from tech, real estate and operations changes, including more use of cloud computing and AI. That could help Deutsche Bank lift its return on tangible equity — a measure of how much profit it makes from its shareholders’ capital — to more than 13% from 2028, outweighing analysts’ expectations of 12.2%, while also ramping up shareholder buybacks over the next two years. Goldman assigned Germany’s biggest lender a target price of 44.25 euros ($46.90), implying a 47% upside. Carlsberg Assigning Carlsberg a price target of 1,200 Danish kroner ($180.10), implying a 24% 12-month upside, analyst Olivier Nicolaï said an expanded soft drinks portfolio is expected to offset the anticipated slowdown in beer sales, particularly in China. The Danish multinational brewer’s acquisition of the U.K.’s Britvic and its PepsiCo bottling license agreements, in 2025, will continue to boost profit margins in the coming years, with Nicolaï forecasting organic sales growth of 3.8% for 2027, versus consensus expectations of 3.4%. CBGC-FF YTD mountain Carlsberg. He also highlighted further upside potential stemming from licensing changes in the Nordics and Baltics, a potential India IPO and a strategic partnership with Japanese brewer Sapporo . Meanwhile, Carlsberg’s deleveraging could see net debt fall from three times its annual earnings in 2025 to 2.5 times in 2027, which Nicolaï said could provide scope for it to restart shareholder buybacks.
