Bank of America 's Europe strategists have named a number of "out-of-consensus" stock picks, which they argue have significantly more potential upside than the market expects. The bank is bullish on Europe and expects the MSCI Europe stocks under its coverage to rise 17% over the coming 12 months, according to strategists led by Milla Savova on Jan. 12. The Wall Street firm also expects European earnings per share growth (an important metric used by traders to gauge the value of a stock) to grow 11% this year — an estimate that is 6% above consensus. On a sectoral basis, the bank is "most positive" on European technology and utilities, projecting upside of 31% and 23%, respectively, for the two sectors over the next 12 months. This compares to consensus estimates of 21% and 13%, respectively. Stock picks Bank of America's list of 10 stocks where the bank's price targets are above consensus estimates include 3 luxury goods companies: Hermes , LVMH and Richemont . The bank's price target for Richemont is higher than consensus by 33%, while its price targets for Hermes and LVMH are 26% and 15%, respectively, above consensus. Two resources companies — Chilean copper miner Antofagasta and France's TotalEnergies — also made the list, with the bank's price targets above consensus by 17% and 21%. Bank of America included Dutch semiconductor equipment maker ASML on the list, with the bank's price target 43% above consensus — the highest of all stocks on the list. British industrial engineering firm Spirax-Sarco also features, with the bank's analysts among the 6% of sell-side analysts on the Street with a buy-rating on the stock, according to Savova. The bank's price target on the company is 26% higher above consensus. Swedish financial services firm SEB , French spirits group Pernod Ricard and Italian energy firm Terna are the remaining names on Bank of America's list of "out-of-consensus" stock ideas.
A Bank of America branch in San Francisco on Jan. 14, 2021.
David Paul Morris | Bloomberg | Getty Images
Bank of America's Europe strategists have named a number of "out-of-consensus" stock picks, which they argue have significantly more potential upside than the market expects.