"Plunge is an opportunity"...Goldman Sachs names 2 European blue-chip stocks expected to jump over 100%

▲ Goldman Sachs, Ceres Power, Rheinmetall/AI generated image

Goldman Sachs has identified Ceres Power and Rheinmetall as promising European stocks whose share prices are expected to more than double. The 12-month upside potential for the two stocks was presented as 168% and 102%, respectively.

According to cryptocurrency media outlet BeInCrypto on August 5 (local time), Goldman Sachs gave the highest upside potential to Ceres Power, a British clean energy developer, among its recommended European stocks for August. Although Ceres Power's stock price plummeted by more than 31% in July, Goldman Sachs viewed the price drop as a buying opportunity. The company's business model, which generates revenue by licensing its technology, and the potential benefit from data center growth were cited as investment rationales.

German defense contractor Rheinmetall followed with a 12-month upside potential of 102%. Rheinmetall's stock price rose by 15.1% in July, but Goldman Sachs judged it to still be significantly undervalued given Europe's expanded rearmament.

Rheinmetall's second-quarter revenue increased by approximately 69% year-on-year to 3.289 billion euros. Operating profit was 562 million euros, exceeding market expectations of around 470 million euros. Rheinmetall is scheduled to announce its detailed first-half results on the 6th, and these results will be the first test to gauge the upside outlook presented by Goldman Sachs.

Goldman Sachs also presented an upside potential of 64% each for BT Group and DSV. BT Group's monetization of its fiber optic network and DSV's integration of DB Schenker were cited as key growth drivers. Semiconductor equipment manufacturer ASML also newly joined the list of monthly top European picks, with a 12-month upside potential of 52%. Goldman Sachs analysts stated, “The expanded use of artificial intelligence is a structural demand driver, and ASML is uniquely positioned to capture investment spending across the semiconductor value chain.”

European stock markets hit record highs amid widening performance gaps among individual stocks. The Stoxx 600 index closed up 0.7% at 656.86, recording a 10% gain for 2026. Among semiconductor stocks, Soitec and AT&S rose 371% and 330% respectively this year, but AT&S and Aixtron fell more than 20% from their mid-June highs.

[Article Summary]

-Goldman Sachs presented 12-month upside potentials of 168% and 102% for Ceres Power and Rheinmetall, respectively.

-Ceres Power plummeted by over 31% in July, but data center growth and its technology licensing business model were cited as investment rationales.

-Rheinmetall was evaluated as a beneficiary of European rearmament, with Q2 revenue increasing by 69% and operating profit exceeding market expectations.

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