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.
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