Goldman Sachs Names 2 European Stocks It Says Can More Than Double

Goldman Sachs handed two European stocks 12-month upside above 100% in its August picks, with UK clean energy developer Ceres Power leading at 168%.

The forecast lands with European stocks at a peak, with the Stoxx 600 touching a record high on Tuesday.

Where Goldman Sachs Sees the Biggest 12-Month Gains

Ceres Power stock slid more than 31% last month as investors questioned supply chains, execution, and the durability of AI demand. Goldman analysts read that drop as an entry point, citing its licensing model and exposure to data center growth.

Rheinmetall took second place with a projected 102% upside. The German defense contractor gained 15.1% in July after beating second-quarter estimates. 

Revenue rose about 69% to 3.289 billion euros, while operating profit hit 562 million euros against expectations of nearly 470 million, according to preliminary figures. Goldman analysts see the stock as sharply undervalued amid Europe’s rearming.

The bank also forecasts 64% upside for BT Group and DSV over 12 months. Analysts point to BT’s fiber monetization and DSV’s integration of DB Schenker, though DSV shares fell 9.3% in July.

Lastly, ASML is one of three names Goldman added to its monthly European Conviction Directors’ Cut’ list. Analysts project 52% upside over 12 months.

“While the broadening use of AI is a structural driver of demand, ASML’s revenue base is diversified across the full semi value chain and its unique product positioning means it captures spend regardless of which application is driving the next wave of chip investment,” the analysts said.

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European Stocks Hit Records While Sector Gaps Widen

Goldman’s bullish outlook comes as European equities continue to reach fresh highs. The Stoxx 600 closed 0.7% higher at 656.86 points, a new record high. The benchmark index has gained 10% in 2026, while UBS recently raised its year-end target to 690, implying about 5% additional upside.

Sector returns diverged sharply, however. Semiconductor names led, with Soitec up 371% and AT&S up 330% year-to-date, according to CNBC.

That trade has since cooled. AT&S and Aixtron each fell more than 20% from their mid-June peaks, yet Morningstar strategist Michael Field argued the spending behind the sector remains locked in.

“The cash is committed to capex and semiconductor firms are seeing the benefit of this spending,” he said.

Rheinmetall publishes detailed first-half results on Thursday. That report offers the first test of whether earnings can support Goldman’s 102% math.

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