Goldman Sachs Names CVC, ICG, and flatexDEGIRO Top European Stock Picks for Q4

Goldman Sachs has identified a select group of European capital-markets stocks, including CVC Capital Partners, ICG, and flatexDEGIRO, as top picks for the fourth quarter. The investment bank's analysts cite improving private-market activity and growing investor participation as key tailwinds for the sector.

Key Selections and Market Catalysts

In a new research note, Goldman Sachs outlined a positive outlook for European firms poised to benefit from several key market trends. The bank highlighted an expected improvement in private-market exits, record flows into passive investments, and rising retail investor participation as primary drivers.

The report assigned 'Buy' ratings to a list of companies expected to capitalize on these themes. The preferred names include CVC Capital Partners, ICG, flatexDEGIRO, London Stock Exchange Group, EQT, Eurazeo, FinecoBank, Nordnet, and Swissquote.

Ad

Spotlight on High-Conviction Names

Among its preferred stocks, Goldman Sachs detailed significant potential upside based on specific company catalysts. The analysis pointed to several names with implied upsides of over 60% from their reference prices.

• flatexDEGIRO: The German online broker was noted for having the largest potential upside of 66%, with a price target of €49. Goldman identified German pension reform, new product launches, and a February 2027 strategy update as potential catalysts.
• CVC Capital Partners: The private equity firm has an implied upside of 63% to Goldman's €20 price target. The bank anticipates that the firm's €26 billion Fund X will enhance visibility on future management fees, while a recovery in private-equity exit activity could bolster performance fees.
• ICG (Intermediate Capital Group): Described as a 'key Buy idea', ICG carries a 60% implied upside to a 2,930p target. Analysts pointed to stronger-than-consensus fundraising, falling leverage, and the prospect of achieving a net cash position, which would increase flexibility for capital returns.
• London Stock Exchange Group: LSEG was also favored, with a price target of 13,140p implying a 61% upside. While positive on the exchange operator and data provider, the report also acknowledged potential risks, including competition, trading volumes, regulation, and the execution of synergies.