UBS has prepared a list of European stocks ahead of results season where it expects the numbers to exceed expectations.
The Swiss bank said there had been a spate of companies beating consensus forecasts as the world has begun to emerge from lockdown.
And while the numbers that ‘surprise to the upside’ will inevitably slow, its analysts think they've spotted 20 companies investors should look out for as the half-year figures start to filter through.
On its radar are four UK companies: all carrying ‘buy’ recommendations and price targets that are well ahead of the share price.
On the UBS list are AstraZeneca (LON:AZN), target £92, Barratt Developments (LON:BDEV), target £8.55, Diageo (LON:DGE), target £38, and IAG (LON:IAG), target £2.88.
“We believe the market remains earnings driven and, from a top-down perspective, still see upside risk to earnings despite strong year-to-date momentum,” the bank in a note to clients.