Barclays has recently released an optimistic outlook on stocks for the year 2024. The investment bank foresees a continuation of upward movement in the stock market, albeit at a more restrained pace compared to the exceptional gains observed in the previous year. Their projection is contingent upon a sustained slowdown in inflation, which would eventually enable central banks to reduce interest rates. Barclays believes that there are still opportunities for stock growth, particularly in sectors such as value, small caps, and international/EU equities, which have the potential to make up ground if a soft landing scenario materializes.
Enav: An Air Traffic Controller Company with Promising Growth Potential
Topping the list of Barclays’ European “Conviction with Catalysts” stock ideas is Enav, an air traffic controller company headquartered in Italy. Barclays has predicted a 59% increase in Enav’s share price to 5.20 euros ($5.70) per share over the next 12 months. The bank anticipates that the company’s upcoming “business plan update,” slated for the first quarter of this year, will serve as a catalyst for the shares to experience a reevaluation. Furthermore, Barclays views the current share price as an opportune entry point for investors, especially after Enav’s challenging performance in 2023.
UCB: Belgian Biopharmaceutical Company Poised for Sales Growth
Barclays is optimistic about UCB, a Belgian biopharmaceutical company, exceeding its 2023 sales projections, primarily attributable to its new psoriasis drug, Bimzelx. Despite encountering challenges in the U.S. due to side effect warnings, Barclays has identified indications of robust global demand for the drug. UCB is scheduled to report its full-year results on Feb. 28, which could potentially ignite a 42% growth in the stock over the next 12 months, according to Barclays.
ABN Amro: Positive Outlook for Dutch Bank ABN Amro
Barclays holds a favorable view of ABN Amro, a Dutch bank that is well-positioned for enhanced profits and cost efficiencies. The investment bank anticipates ABN Amro revising its capital ratio target when it releases its results on Feb. 14, thereby releasing funds for dividends and share buybacks.
Vivendi: French Media Conglomerate Considering Strategic Restructuring
In December, French media conglomerate Vivendi made public its contemplation of a potential three-way split. Barclays estimates that this move could unlock a 24% upside in Vivendi’s valuation due to reduced holding company discounts. More detailed information is expected to accompany Vivendi’s 2023 results on March 8, and this announcement could prove to be a significant catalyst for the stock.
Volkswagen: Prospects of Turnaround for the Car Manufacturer
Barclays is upbeat about Volkswagen’s potential for a turnaround in 2024 following challenging performances in 2023 and 2022. The bank has faith in the carmaker’s management commitment to enhancing margins and believes that the launch of
electric vehicles in the current year will lead to a shift in Volkswagen’s product mix towards higher-profit models. In addition, Barclays sees room for earnings upgrades and re-rating potential, especially in the context of exceptionally negative investor sentiment.
In conclusion, Barclays’ insight into these five companies provides valuable guidance for investors seeking potential opportunities in the
stock market. However, it’s important to conduct thorough research and consider individual financial goals before making any investment decisions.
