LIVE MARKETS-UBS sees STOXX upside in 2026, but also winners and losers

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UBS SEES STOXX UPSIDE IN 2026, BUT ALSO WINNERS AND LOSERS

UBS equity strategists are optimistic about Europe's STOXX 600 reaching new heights in 2026, but when it comes to single stocks, they flag some "haves" and "have nots."

Back in September, the team upgraded their STOXX 600 .STOXX price target to 600 for 2025 and 650 for 2026 - a respective 2.9% and 11.4% jump from where things currently stand.

They say their optimism reflects an accelerating business cycle, material earnings growth, cheap relative valuations and low positioning/sentiment.

"Events since then have only reinforced our view that Europe can deliver these returns in 2026," they said on Friday in a note.

A few key themes are top of mind; renewables, electrification and productivity leaders being some.

"...we favour all financials, utilities, energy, transportation, food retailers, healthcare equipment and tech hardware," say the strats.

Some buy-rated conviction stocks include Telia, Italgas, Fresenius, Solaria, Admiral, ABN, Soc Gen, GALP, Marks & Spencer, Convatec and Investec.

The sectors they dislike are fewer and far between - namely autos, chemicals and household goods stocks.

They are all "vulnerable to currency and tariff headwinds and weaker global growth expectations."

Their least favoured names are Renault, K+S, Unilever and Beiersdorf.

(Lucy Raitano)

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