News Analyst
The outlook for stock markets looks “decent” through 2025, according to Barclays, as central banks cut interest rates and the global economy remains resilient. “Given the limited rise in valuations in the frothy parts of the market, global equities may again struggle to generate outsized risk-adjusted returns in 2025. But they remain favorable relative to bonds, cash and credit,” the investment bank’s analysts wrote in a November statement. 18 research note. The bank cited “overweight stocks that our analysts have high conviction in 2025 and see value in holding on an individual basis.” Here are three of Barclays’ top picks, which offer more than 35% upside potential: Shell Barclays is bullish on Shell and has a £36 ($45.60) price target on the stock, giving it an upside potential of around 40%. The investment bank describes the oil and gas giant as “an attractive stock to consider for 2025 due to its strong operational momentum, solid cash flow generation and attractive shareholder returns.” “Shell offers both value and momentum through 2025,” the analysts write, adding that its shares appear undervalued. Going forward, they expect the company’s free cash flow to be $23 billion, “leaving plenty of room to pay dividends and complete repurchases.” Shell’s shares are listed on the London Stock Exchange and trade as an American Depositary Receipt (ADR) in the United States under the symbol SHEL. AstraZeneca In the pharmaceutical sector, Barclays is betting on AstraZeneca. “We believe this is now a compelling entry point into AstraZeneca as 2025 is shaping up to be a year of game-changing catalysts,” the analysts explained. Those catalysts include an $80 billion revenue target for 2030 that the company announced in May, about $10 billion more than expected at the time. AstraZeneca shares are listed on the London and Stockholm stock exchanges and trade as ADRs in the United States under the symbol AZN. They are currently trading at a discount three times their five-year average, Barclays analysts said. “We view this as a very attractive valuation given that we expect core EPS to grow.” The investment bank has a £14 price target on AstraZeneca, implying an upside potential of around 41.6%. Also on Barclays’ list is semiconductor equipment supplier BE Semiconductor Industries, which it says will benefit from an “industry-wide expansion in advanced packaging “. Besi is a market leader in advanced packaging capable of improving chip efficiency and performance. Analysts expect BeSi to experience “strong growth in 2025 and bright medium-term growth prospects” thanks to its “dominant position in the hybrid bonding market and its expansion potential in thermal compression bonding “. Analysts noted that the Dutch stock trades at a premium to its peers, but said that valuation was justified. Shares of BE Semiconductor Industries are listed on Euronext Amsterdam and trade as an ADR in the United States under the symbol BESIY. Barclays has a price target of 160 euros ($169.50) on the Amsterdam-listed stock, giving it 44% upside potential. — CNBC’s Michael Bloom contributed to this report.
https://www.cnbc.com/2024/11/20/three-global-stocks-stocks-to-own-in-2025-according-to-barclays.html
