Goldman Sachs names 10 ‘rapidly’ growing global stocks — and two have an upside of 45%

Published Wed, Jun 23 20211:16 AM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Analysts at Goldman Sachs have picked multiple stocks set to "rapidly outgrow" their pre-Covid earnings as the post-pandemic reopening picks up in Europe. The bank said all of the large global companies on its "Reopening Beneficiaries" list have more than 10% potential upside to their 12-month share price targets — and all are buy-rated by its analysts. Published Monday, Goldman's latest "Reopening Scale" tracks economic activity in Europe and the U.K. each week and analyzes data on hotel bookings, online flight searches and restaurant bookings, as well as vaccination and hospitalization levels. Here are 10 of Goldman's top stock picks — two of which have a potential upside of 45%: Oil BP tops Goldman's list of buy-rated "Reopening Beneficiaries" that are "international facing" and have a more-than 10% upside to their 12-month price targets. The investment bank puts the potential upside to BP's 12-month price target at 45%, while for Italian firm ENI the figure is 27%. The bank also picked French group Total , with a potential upside of 23%. Aviation industry Airplane engine-maker Rolls Royce has a potential upside of 45%, according to Goldman's analysis, while British airline EasyJet 's is at 18%. The bank also picked Airbus , with 18% upside, and airport operator Flughafen Zurich , with 27% upside potential. Retail Swiss conglomerate Richemont is another of Goldman's reopening beneficiaries, with an upside potential of 13%, according to the bank's analysts. They also chose watch company Swatch Group , with an upside potential of 19%, and sportswear firm Adidas , with 16%. 'Accelerating' reopening Goldman described the reopening in Europe as "accelerating" and said it favored businesses "that have the potential to rapidly outgrow the pre-covid earnings level." The bank's data shows a significant increase in flight searches in E.U. countries in line with the bloc's introduction of a Digital Green Pass allowing vaccinated citizens to travel freely to certain countries, set for a partial roll out from July 1. Restaurant bookings, job postings and retail sales in the U.K. are all up on their pre-Covid levels, the bank added, although the British government postponed a full reopening to July 19 due to a surge in virus cases caused by the delta variant. Goldman's "Reopening Beneficiaries" list was put together by analysts in its Tactical Research Group, the bank said. "These are stocks which they identify to be most impacted by Covid-related restrictions and likely to benefit strongly from positive, and importantly sustained, reopening developments," it added.

The nose of an Airbus A380 is seen outside the factory of Stelia Aerospace, a subsidiary of Airbus, in Meaulte, France, July 2, 2020.

Pascal Rossignol | Reuters

Analysts at Goldman Sachs have picked multiple stocks set to "rapidly outgrow" their pre-Covid earnings as the post-pandemic reopening picks up in Europe.

The bank said all of the large global companies on its "Reopening Beneficiaries" list have more than 10% potential upside to their 12-month share price targets — and all are buy-rated by its analysts.