UBS
has
named
its
high
conviction
buy
ideas
across
Europe
and
Asia.
For
Europe,
including
the
U.K.,
UBS
analysts
came
up
with
32
buy
recommendations
“poised
to
captivate
and
elevate”
investors’
portfolios.
It
included
what
it
called
“high
quality
value
buy”
names
such
as
British
pharmaceutical
giant
GSK
,
German
semiconductor
firm
Infineon
Technologies
and
U.K.
tobacco
company
Imperial
Brands
.
For
the
Southeast
Asian
region,
it
added
stocks
such
as
petroleum
producer
PTTEP
and
conglomerate
SM
Investments
.
These
are
its
high
conviction
picks,
which
the
bank
released
this
month.
UBS
gave
Dutch
online
food
delivery
firm
Just
Eat
Takeaway
the
highest
potential
upside
to
its
price
target
in
its
list
—
91%.
It
says
the
firm
is
enjoying
a
“substantial
self-help
opportunity”
through
the
rising
efficiency
of
its
delivery
logistics.
The
bank
added
that
the
firm’s
U.K.
market
is
“defendable”
because
of
its
local
scale
and
ongoing
investments
in
“meaningful
product
drivers
such
as
logistics,
grocery
and
restaurant
choice.”
“We
see
a
substantially
undervalued
core
business
composed
of
the
visibly
high
quality
Northern
European
segment
and
the
more
debated
UK
&
I
segment,
which
we
believe
to
be
at
an
inflection
point
in
its
competitive
trajectory
and
poised
for
substantial
profit
over
delivery,”
the
bank
said,
referring
to
the
U.K.
and
Ireland.
British
low-cost
airline
EasyJet
received
a
potential
51%
upside
from
UBS,
among
the
highest.
UBS
said
EastJet
traffic
volumes
are
expected
to
recover
to
pre-pandemic
levels
of
2019,
which
it
says
should
continue
to
generate
higher
profits
for
the
group.
“We
think
profits
can
still
grow
on
the
back
of
a
benign
fuel
price,
profitable
volume
additions
at
the
airline
and
a
material
increase
in
the
profitability
from
the
holidays
business,”
the
bank
wrote.
UBS
gave
new
addition
Infineon
Technologies
a
potential
29%
upside.
It
believes
that
the
semiconductor
firm
can
deliver
more
than
10%
growth
as
the
economy
recovers.
“We
have
long
believed
Infineon
has
the
capacity
to
outperform
the
sector
and
deliver
high-single-digit
through-cycle
growth,
supported
by
rising
EV
penetration
and
the
growing
importance
of
energy
efficiency
benefiting
other
parts
of
the
business,”
it
said.
It
says
Infineon
enjoys
“some
of
the
most
compelling
structural
growth
drivers”
in
the
sector
as
a
leader
in
power
semiconductors
—
and
is
set
to
grow
faster
than
its
peers.
UBS
is
also
positive
on
GSK
,
another
of
its
additions,
citing
a
greater
shift
to
newer
HIV
drugs
and
the
“associated
positive
mix
shift”
to
older
adult
vaccines.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
