Top 4 European Stocks to Invest in by Bank of America By Investing.com


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Investing.com – Macroeconomic conditions are increasingly favoring investing in compound income stocks. “We think bond yields have peaked or are about to peak,” Bank of America (NYSE:) said in a statement.

The yield on 10-year US Treasury bonds has fallen from about 1.6% at the beginning of the year to about 3% now. Meanwhile, 10-year German bond yields rose from around -0.18% to 1.3%. The bank expects the benchmark 10-year German bond to yield 0.75% at the end of the year.

“Supported by the rate cap and disappearance sentiment, our European strategy team has recently become more positive about quality stocks,” the bank added.

4 best European stocks to invest in

ASML (AS:), a semiconductor company, is capitalizing on its “next generation” technologies, including extreme ultraviolet radiation used in cloud computing, artificial intelligence and 5G, which are expected to be “disruptive” trends this decade, according to the bank. .

The fair value of the shares is expected to average €585.51 under the Investing Pro model, representing upside potential of 3.4%. The stock price is at the bottom of its 52-week range, offering upside potential. Analysts expect the average price to be €807.36 with a range of €601 to €986.

LVMX (EPA:), Luxury group, “remains one of our most compelling ideas in the luxury space, and we continue to see significant upside to the current share price.” The bank particularly values ​​its Dior brand, as well as jewelry company Tiffany, which the group bought for $15.8 billion in 2021.

The fair value of the shares is expected to average €691.73 under the Investing Pro model, representing upside potential of 15.0%. The stock price is at the bottom of its 52-week range, offering upside potential. Analysts expect the average price to be €795.72, with a range of €510 to €950.

Assa Abloy (ST:), the security company is said to have “a track record of sustainable growth, profitability and cash generation” and the bank also values ​​its pricing ability and M&A strategy.

The fair value of the shares is expected to average 297.33 SEK under Investing Pro model, representing upside potential of 21.9%. The stock price is at the bottom of its 52-week range, offering upside potential. Analysts expect the average price to be 292.68 SEK with a range of 225 to 330 SEK.

Ashted (LON:), an equipment rental company, is expected to benefit from its US business. “Ashtead is in a unique position to take advantage of growing rental penetration in the US over the medium term, both for its construction and its specialized development. Overall, we believe the group should be able to deliver double-digit revenue growth over the next few years. , even with the potential risk of a mild recession in the US.”

The fair value of the shares is expected to average 5,036.44p under Investing Pro model, representing 22.9% upside potential. The stock price is at the bottom of its 52-week range, offering upside potential. Analysts expect the average price to be 6.004 pence with a range of 4.000 to 7.813 pence.

See the Investing Pro templates for more details on the stocks mentioned and their fair value and other metrics.