STOCKS NEWS EUROPE-RBC CM likes energy, industrials for 2013

Thu Dec 20, 2012 7:46am EST

With the world economy set to slowly warm up in 2013, some of European-listed construction, industrial and energy companies could do well, reckons RBC Capital Management.

RBC CM's list of top 30 stocks for 2013 features seven European names, two of them from UK, which is broadly in line with the 20 percent weighting that the region has in its research coverage universe.

"The energy sector underperformed the broader market in 2012. We believe there are attractive investment opportunities with high quality operators and established track records," RBC analysts say in a note.

Here, their top European picks are Tullow Oil and Statoil, which "have demonstrated consistent success within the Energy E&P sector and have compelling exploration and/or production prospects".

Industrials, namely Schneider Electric and Philips, are picked as likely to benefit from a broader economic recovery, while Wolseley should do well if the U.S. housing market picks up.

The list also includes two non-euro zone financials. Swedbank, also a top pick for 2012 and up 41 so far this year, remains in favour thanks to strong profit growth, a good balance sheet and efficiency gains.

Swiss asset manager GAM, meanwhile, is picked for an attractive return potential and an "unwarranted" valuation discount to the sector.

Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net

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