Goldman adds three new names to its favorite stocks list — including a standout 77% upside call
Goldman Sachs has added an energy multinational, a Dutch payment processing company and a German insurance name to its latest European “Conviction List – Directors’ Cut” stock picks list. The list charts Goldman’s key buy-rated names in the region for September, including continental mainstays such as defense giant Rheinmetall , which the bank assigned a 109% upside, as well as Siemens , ASML Holding , HSBC and private equity mainstay CVC Capital Partners . Goldman has removed Enel , Wise Group , Hannover Re and Zalando from the list for this month. Here are the investment bank’s latest additions: Adyen Amsterdam-headquartered e-commerce and payment processing company Adyen can deliver a 77% upside, according to Goldman. Analyst Mohammed Moawalla said the company’s integrated technology platform gives it an edge. He noted growth driven by new clients, including the ramp-up of its U.S. partnership with Toast and Shopify ‘s expansion across Europe, and new products and services. ADYEN-NL YTD mountain Adyen. The investment bank said Adyen also stands to benefit from the rise of “agentic” AI-powered commerce, highlighting partnerships with OpenAI, Google and Microsoft. Recent acquisitions, including loyalty specialist Talon.One and billing platform Orb, could broaden its offering further. RWE Goldman gave German energy firm RWE a 75 euro per share target, implying 28% upside. Analyst Alberto Gandolfi said the Frankfurt-listed group’s pivot from conventional power company to “vertically-integrated energy powerhouse” — built around grid investments and potential data center deals in Europe and the U.S. — can boost its valuation. Gandolfi pointed to stronger U.S. renewable returns and potential profits from U.S. LNG. He also highlighted emerging Central European capacity payments — financial support mechanisms used by governments to pay power generators for keeping reliable electricity capacity available — which could add 300-400 million euros ($348-$464 million) in pre-tax profits by 2032-33. RWE-DE YTD mountain RWE. RWE’s increased 55% stake in German grid operator Amprion should also make its earnings mix more regulated and predictable, Goldman said. The bank expects power networks to account for roughly one-third of group profits by 2029, up from 23% in 2025, which would help cut capital costs. Talanx German insurer Talanx ‘s lean cost base and 6 billion euros of resilience reserves can help sustain earnings growth, even as pricing softens in its reinsurance and corporate-specialty units, according to Goldman. Talanx’s Retail International division, which focuses on private and commercial insurance outside the country, and accounts for 23% of profits, remains an “underappreciated growth engine”, said analyst Andrew Baker. TLX-FF YTD mountain Talanx. The unit operates in faster-growing, less-penetrated insurance markets including Poland and Latin America, where Talanx is the second-largest player. Baker said gross written premiums in the unit are set to grow by 8-10% annually between 2026 and 2030, versus around 3-6% for developed-market peers, while maintaining underwriting discipline. Giving the stock a 141 euro price target, with a 13% upside, Baker also flagged additional opportunities from at least 5 billion euros of M & A capacity, as well as Talanx’s eventual DAX inclusion.
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