Vodafone, Adecco, Nestle Among UBS's `Premier 15' Stocks
quote.bloomberg.com
By John Fraher
London, Oct. 25 (Bloomberg) -- Gains by European food-and- beverage and drug stocks shouldn't blind investors seeking reliable earnings growth to individual opportunities in other industries, said UBS AG analysts unveiling their ``Premier 15'' of European stock picks.
Stocks such as Aventis SA, France's largest drugmaker, may extend gains of as much as 46 percent this year as investors seek out companies whose earnings are seen as steady generators even as the economy slows, said analysts Alex Ions, Ian Harnett, Saul Henry and Philip Pashov in a note.
Still, companies such as Vodafone Group Plc and Adecco SA may also advance if they meet earnings forecasts and rivals disappoint.
``We want to point out the companies that have the most robust earnings forecasts'' and which aren't likely to miss forecasts during the next year, Ions said.
Ericsson AB, the world's third biggest maker of mobile phones last week reported full year earnings would miss forecasts, prompting a 16 percent drop in its share price.
Gains Seen
Eni SpA, BAE Systems Plc, Nestle SA, Aventis, Lattice Group Plc, Adecco SA, Riunione Adriatica di Sicurta SpA, Marconi Plc, Telecom Italia SA, BNP Paribas SA, Royal Bank of Scotland Group Plc, Munich Re., Vodafone, Alcatel SA and Zurich Financial Services AG were the companies that made UBS's list of 15 shares.
The stocks selected are expected to rise by an average of 36 percent over the next year, compared with a gain of 10-15 percent in the rest of the market over the same period, according to Ions.
The selection is divided into three groups. Nestle, Aventis, Eni, BAE and Lattice will likely rise as investors persist in seeking companies with proven track records of steady profit growth and the potential for earnings upgrades.
Vodafone, Adecco, Alcatel, RAS and Marconi may gain if they meet earnings forecasts as economic growth slows and other companies in their industries miss forecasts.
Telecom Italia, BNP Paribas, Royal Bank of Scotland, Munich Re and Zurich Financial could advance amid optimism cost-cutting and restructuring will boost earnings, the analysts said. |
