Goldman
Sachs
has
identified
three
“attractive”
value
stocks
that
could
see
significant
share
price
appreciation
over
the
next
12
months.
The
Wall
Street
bank’s
analysts
see
over
50%
upside
potential
in
British
Airways
parent
International
Consolidated
Airlines
Group
,
vehicle
manufacturer
CNH
Industrial
,
and
health
technology
company
Philips
.
Shares
of
all
three
companies
are
traded
across
Europe
and
the
United
States.
Goldman
Sachs
said
all
three
companies
stand
out
amongst
their
European
peers
for
their
cheap
valuations
compared
to
earnings
growth
prospects.
“European
equities
do
stand
out
on
valuation,
trading
well
below
historical
multiples,”
said
the
analysts
led
by
John
Sawtell,
Goldman’s
co-head
of
European
equity
research.
IAG
The
bank’s
airline
analyst
Patrick
Creuset
upgraded
IAG
to
buy
in
January
after
noting
that
the
stock
had
not
reacted
to
consensus
earnings
upgrades
from
analysts.
Creuset
sees
“further
upside
to
consensus”
for
IAG
‘s
2024
earnings
and
expects
the
stock
to
rally
64%
from
the
current
share
price
of
145
British
pence.
U.K.
shares
are
generally
priced
in
pence,
with
100
pence
equal
to
one
British
pound
($1.26).
IAG-GB
1Y
line
Philips
Goldman
recommends
buying
Philips
and
expects
the
shares
to
be
up
51%
over
the
next
12
months.
The
investment
bank’s
analyst
sees
“robust
margin
progression”
for
Philips
in
2024,
driven
by
manufacturing
savings
and
the
easing
of
previous
pricing
pressures.
Philips
CEO
Roy
Jakobs
told
CNBC
last
month
that
the
company
was
“pulling
growth
out
of
every
single
market”
and
looking
toward
introducing
more
artificial
intelligence-powered
technology
within
healthcare.
CNH
Industrials
Goldman
Sachs
upgraded
CNH
to
buy
last
month.
Shares
are
expected
to
rise
by
57%
to
$19
a
share.
The
bank’s
analyst
believes
the
stock
has
oversold
in
expectation
of
a
downturn
in
the
agricultural
equipment
market
while
underestimating
CNH’s
potential
for
profit
margin
growth
through
cost
cuts
and
pricing
power.
CNHI
1Y
line
—
CNBC’s
Michael
Bloom
contributed
reporting.
