Barclays
has
made
an
upbeat
forecast
for
stocks
in
2024,
expecting
higher,
yet
more
moderate,
returns
than
the
exceptional
gains
of
last
year.
The
investment
bank
believes
stocks
still
have
room
to
rise
if
inflation
continues
slowing,
allowing
central
banks
to
eventually
cut
interest
rates.
“Much
dislocation
remains
under
the
hood,
with
value,
small
caps
and
international/EU
equities
offering
catch-up
potential
if
a
soft
landing
indeed
materializes,”
said
Barclays
equity
strategists
led
by
Emmanuel
Cau
in
a
note
to
clients
on
Jan.
18.
The
Wall
Street
bank
named
the
following
five
companies
in
its
European
“Conviction
with
Catalysts”
list
of
stock
ideas
that
offer
strong
upside
potential.
Enav
Topping
the
list
with
the
biggest
upside
potential
is
Enav
,
an
air
traffic
controller
company
based
in
Italy.
Barclays
expects
shares
to
rise
by
59%
to
5.20
euros
($5.70)
a
share
over
the
next
12
months.
The
bank
expects
the
company’s
“business
plan
update”
scheduled
for
some
time
in
the
first
quarter
of
this
year
to
be
a
catalyst
for
the
shares
to
rerate.
The
investment
bank
also
sees
the
current
share
price
as
“an
attractive
entry
point”
for
Enav’s
stock
after
a
difficult
2023.
UCB
Barclays
believes
Belgian
biopharmaceutical
company
UCB
can
beat
2023
sales
expectations
thanks
to
its
new
psoriasis
drug
Bimzelx.
Although
the
drug
has
struggled
in
the
U.S.
over
side
effect
warnings,
Barclays
sees
signs
of
healthy
global
demand.
UCB
reports
full-year
results
on
Feb.
28,
a
catalyst
that
could
help
the
stock
begin
its
rise
by
42%
over
the
next
12
months,
according
to
the
bank.
ABN
Amro
Dutch
bank
ABN
Amro
is
also
well
positioned,
in
Barclays’
view,
and
looks
set
for
stronger
profits
and
cost
savings.
The
investment
bank
anticipates
ABN
lowering
its
capital
ratio
target
when
it
reports
results
on
Feb.
14,
freeing
up
cash
for
dividends
and
buybacks.
Vivendi
In
December,
French
media
conglomerate
Vivendi
announced
it
is
considering
splitting
into
three
separate
companies.
Barclays
estimates
that
could
unlock
24%
upside
in
Vivendi’s
valuation
owing
to
lower
holding
company
discounts.
The
bank
said
more
details
are
expected
alongside
2023
results
on
March
8,
which
could
prove
to
be
a
catalyst.
Volkswagen
Barclays
believes
Volkswagen
offers
turnaround
potential
in
2024
after
a
disastrous
2023
and
2022.
The
bank
sees
the
carmaker
‘s
management
as
committed
to
improving
margins.
Barclays
also
believes
electric
vehicles
hitting
showrooms
this
year
should
boost
Volkswagen’s
mix
toward
higher-profit
models.
“Overall,
in
the
context
of
extremely
negative
investor
sentiment
we
see
room
for
earnings
upgrades
and
re-rating
potential,”
said
the
Barclays
analysts.
—
CNBC’s
Michael
Bloom
contributed
reporting.
