2 European Stocks with 100% Target Price (According to Barclays)

Barclays Identifies 2 European Stocks with 100% Upside Potential

Barclays has selected 2 European stocks with a target price of 100% upside.
In recent years, European stocks have been less attractive to investors compared to other regions, due to factors such as the war in Ukraine, the energy crisis, high inflation, and high interest rates.

However, investor sentiment is changing.
Currently, Europe offers interesting opportunities due to lower valuations compared to Japan, Asia, and the United States, and the prospect of an economic recovery.
With a forward price/earnings ratio of 13.5x and an average dividend yield of 3.4%, the European stock market is considered undervalued.

Barclays has recently identified 2 European stocks with the potential for over 100% growth in the next 12 months, making them particularly attractive investments.
Let’s take a closer look at which stocks they are.

Aston Martin Lagonda Global Holdings PLC (LSE)

Aston Martin Lagonda Global Holdings PLC, a British luxury sports car manufacturer, is one of Barclays’ most optimistic stocks.
The investment bank has assigned the stock an “overweight” rating and a price target of £300, indicating a potential upside of 102% from the current price of around £147.
This optimism is based on several key factors that could lead to a significant revaluation of the stock.

Despite the challenges highlighted by lower-than-expected first-quarter results and the discontinuation of production of some key models, Aston Martin is planning to launch a new range of vehicles by the end of the year.
This launch could be a turning point for the company, fostering a recovery in sales and boosting investor confidence.
Barclays points out that the market may not have fully recognized the potential for a significant turnaround and restructuring of the company.

Furthermore, the European economic recovery could play in favor of Aston Martin, as luxury sectors tend to thrive in periods of economic growth.
If the economy of the European bloc continues to improve, this could result in an increase in demand for luxury cars.
Barclays sees Aston Martin as an interesting investment opportunity for those looking to capitalize on the upside potential of the European stock market.

BP PLC

BP PLC is one of the leading British oil and gas producers, and Barclays considers it a highly promising European stock.
BP’s shares skyrocketed with the rise in oil prices after the Russian invasion of Ukraine but then plummeted with the easing of the energy shock.
Currently, crude oil is at three-month lows due to global economic uncertainty and reduced fears of a direct conflict between Israel and Iran.

Today, BP shares are trading at a very affordable price, at only 6.97 times earnings, compared to the FTSE 100’s average valuation of 13 times.

Barclays has assigned an overweight rating to BP with a price target of £10, indicating a potential upside of 105% from the closing price of £4.88 on May 31, 2024.
This target price is based on several strategic and fundamental considerations.

Despite lower-than-expected first-quarter results in 2023, mainly due to weaker margins in fuels and lower gas and oil prices, Barclays remains optimistic about BP’s long-term prospects.
The bank highlights that BP has a solid track record of capital performance and is making significant progress towards energy transition, a crucial factor in an increasingly sustainability-oriented world.

Barclays’ optimism is further supported by the company’s margin resilience and strong capital returns.
With a recovery in the global energy market and a potential stabilization of oil and gas prices, BP is well positioned to benefit from these developments.
Additionally, BP’s initiatives to reduce carbon emissions and invest in renewable energies could attract further investments from sustainability-focused funds.

Ultimately, the European economic recovery plays a significant role in BP’s prospects.
With an improving economic environment, energy demand is expected to rise, supporting BP’s earnings and making the stock an interesting option for investors seeking significant upside potential.