The experts of Bank of America have selected a series of european values which, in his opinion, have a “Interesting upside potential”. In fact, the entity predicts that MSCI Europe index stocks under his cover will go up 17% in the next 12 months.
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By sectors, the US signature is shown more positive with that of technology and European public services, for which it predicts increases of 25% and 20%, respectively; compared to the advances of 14% and 12% estimated by the consensus of analysts.
Regarding the expected earnings per share, a metric widely used in company valuation, the aforementioned managers expect it to register a 10% average growth in 2022; the strongest being the energy sector, which, according to its projections, could advance by 31%.
THE MAIN BETS OF BANK OF AMERICA
Under these premises, Bank of America managers choose the ten European titles that could perform better in the year that we are about to release. And within this list they include the Swiss Richemont already french Hermes, two companies that belong to one of the sectors that has performed the best this year, that of luxury.
Likewise, the bank also opts for two energy companies: the gala TotalEnergies and the norway Equinor; and by the British Society of Industrial Engineering Spirax-Sarco; a group that, according to their calculations, could score a 26% rise.
Bank of America managers also like the copper mining company Antofagasta, the Dutch semiconductor manufacturer ASML, the French insurer AXA, the swedish bank SEB and the Italian energy operator Terna.
OTHER ACTIONS WITH A “SIGNIFICANT POTENTIAL”
Along with these ten titles, Bank of America analysts mention other companies are also among his favorites for 2022.
Thus, in a scenario that foresees an economic recovery for Europe (despite inflationary pressures and the rebound in bond yields), these experts recommend overweight portfolio stocks in two sectors: financial services and energy.
From the first, they choose Societe Generale, Credit Agricole, Natwest, Barclays, Standard Chartered, Lloyds, UniCredit, Deutsche Bank and spanish Santander Bank; while, of the second, they opt for the Spanish Repsol, by the Italian Eni and by the british BP, in addition to the already mentioned Equinor.
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