Goldman Sachs Updates European Conviction List (August 2026)
Goldman Sachs has refreshed its European Conviction List for August 2026, adding three stocks—ASML, Sika and Puig—and removing Schneider Electric and Knorr‑Bremse. The changes reflect the firm’s latest analyst assessments and forward‑looking earnings expectations.
ASML Holding NV
Analyst Alex Duval notes that ASML’s visibility has improved due to strong order intake across both Logic and DRAM segments, which underpins capacity‑addition plans. Duval’s earnings model places ASML’s earnings‑per‑share (EPS) 5 % to 18 % above consensus for fiscal years 2027 through 2029. He also forecasts a margin expansion from roughly 41 % in FY 2026 to about 50 % by FY 2029, driven by pricing power, a product mix shift toward higher‑priced platforms, and operating leverage. While some market commentary frames ASML as an AI‑driven stock, Duval emphasizes that over half of its revenue growth originates from non‑AI sources and that the customer base is becoming increasingly broad.
Sika AG
Analyst Ben Rada‑Martin adds Sika to the list, citing early signs of volume inflection that he expects to be sustainable. The growth is supported by a defensive mix of end‑markets—including infrastructure, renovations and data‑centers—combined with pricing power that remains intact even as raw‑material inflation eases. Rada‑Martin projects Sika’s FY 27 EPS to be 5 % ahead of consensus, reinforcing the conviction that the stock offers downside protection on the margin side.
Puig
Analyst Aron Adamski highlights Puig’s innovation‑led trajectory, describing the current launch pipeline as the busiest the company has ever experienced. Although the women’s fragrance segment is nearly twice the size of the men’s segment, Puig holds only an 8 % share in women’s fragrances versus 17 % in men’s, indicating a sizable “white‑space” opportunity. Adamski points to growth potential in makeup and skincare, which together account for less than 30 % of total sales. He also notes Puig’s low leverage, providing “optionality for selective bolt‑ons,” and expects operating leverage to support margin expansion, with upside if new launches perform on par with prior successes.
Overall Implication
The inclusion of ASML, Sika and Puig reflects Goldman Sachs’ confidence in their earnings visibility, margin expansion prospects, and strategic positioning within their respective sectors. The removal of Schneider Electric and Knorr‑Bremse signals a relative de‑emphasis on those firms for the current conviction period.