Goldman Sachs has identified several European capital markets stocks poised to benefit from improving conditions in private markets, record inflows into passive investments, and an increase in retail investor participation as the fourth quarter approaches. The bank's preferred stocks include CVC Capital Partners, ICG, flatexDEGIRO, London Stock Exchange Group, EQT, Eurazeo, FinecoBank, Nordnet, and Swissquote, all of which have received Buy ratings.
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Among these, flatexDEGIRO stands out with the highest projected upside from Goldman Sachs, estimated at 66%, with a target price of €49 compared to its September 29 closing price of €29.50. Goldman cites potential catalysts such as German pension reform, the introduction of new products, and more clarity from the company’s strategic update scheduled for February 2027.
CVC Capital Partners also features prominently, with a 63% implied upside to a target price of €20 from its current price of €12.30. The bank anticipates that CVC's €26 billion Fund X will enhance visibility for future growth in management and fee-related earnings, alongside improved conditions for private-equity exits that may boost performance fees.
ICG has a 60% implied upside, with a target price of 2,930p from its current price of 1,831p. Goldman Sachs regards ICG as a key Buy idea, highlighting stronger-than-expected fundraising, decreasing leverage, and the likelihood of transitioning to net cash, which could provide more flexibility for capital returns.
The London Stock Exchange Group is assigned a target of 13,140p, representing a 61% upside from its current reference price of 8,182p. Goldman maintains a positive outlook on the exchange and market data firm, though it acknowledges risks related to competition, trading volumes, regulation, and the execution of synergies.