Ceres Power stock tanked 31% last month, yet Goldman Sachs just slapped a 168% upside target on the UK clean energy developer. The bank's August picks landed as European equities hit fresh records, with the Stoxx 600 closing at 656.86 points, a new all-time high. That timing matters. Investors had dumped Ceres shares over supply chain jitters and AI demand durability. Goldman sees it differently: the licensing model and data center exposure offer a real entry point at depressed levels.
Rheinmetall grabbed the second spot with 102% projected upside. The German defense contractor actually moved the right way in July, rallying 15.1% after beating second-quarter numbers. Revenue surged 69% to 3.289 billion euros, operating profit came in at 562 million euros versus expectations around 470 million. Goldman analysts flag it as severely undervalued amid Europe's military spending surge.
BT Group and DSV each attracted 64% upside forecasts. BT's fiber monetization and DSV's DB Schenker integration landed on analysts' radar, though DSV fell 9.3% in July. ASML rounded out the conviction list with 52% upside. The semiconductor equipment maker's revenue stretches across the full chip value chain, and its unique positioning means it captures spending regardless of which application drives the next wave of investment, Goldman wrote.
European equities have now gained 10% so far this year, with UBS recently raising its year-end target to 690, implying roughly 5% more room. But the rally hasn't been even. Semiconductor names like Soitec and AT&S soared 371% and 330% year-to-date respectively, though AT&S and Aixtron have since retreated more than 20% from mid-June peaks. Morningstar strategist Michael Field notes the underlying cash commitments remain solid. Capex spending is locked in, and semiconductor firms are already seeing the benefit.
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