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Investing.com -- Goldman Sachs added Norwegian seismic data company TGS ASA and UK multi-industry group Halma Plc to its European Conviction List, while removing Bayer AG, Anheuser-Busch InBev and Deutsche Telekom from the 27-stock selection of its most differentiated buy recommendations.
The changes, in the broker’s July 2026 Directors’ Cut update, leave the list with a median 12-month total return potential of 32% and median upside to price target of 29%, based on closing prices as of June 30.
Goldman Sachs said TGS ASA should be "one of the earliest beneficiaries of oil capex increasing and the return to frontier investment," citing reserve life down approximately 60% after a decade of underinvestment and maturing U.S. shale.
The analysts set a 12-month price target of 180 Norwegian crowns based on 3.5 times 2027 estimated EV/EBITDA. The stock closed at 128.90 crowns on June 30, implying 40% upside. TGS has a market capitalization of €2.23 billion.
The broker forecasts TGS’s multi-client division, approximately 60% of overall sales, to grow 19% year-on-year in fiscal 2026 against consensus of 8%, and contract division revenues rising 19% and 7% in fiscal 2027 and 2028 respectively, against consensus of 8% and 15%.
TGS trades at 3.1 times 12-month forward EV/EBITDA, below its through-the-cycle average of 3.5 times. Vessel capacity in the seismic sector has fallen approximately 70% since 2013.
Analysts described Halma as "one of the highest-quality, highest-return growth compounders with a proven track record," noting only one year in the past 20 in which its three-year trailing EPS growth fell below 8%.
The broker set a 12-month price target of 5,010 pence based on a sector-relative EV/IC to ROIC/WACC methodology. The stock closed at 3,934 pence on June 30, implying 27% upside. Halma has a market capitalization of €17.23 billion.
Analysts forecast group EPS growth of more than 14% over the next three years against consensus of 11.8%, and projected Photonics, roughly 20% of revenues, to grow 39% in fiscal 2027.
A roughly 15% stock decline following fiscal 2026 results, tied to Photonics guidance disappointment, offered a compelling entry point, the broker said. Halma completed five acquisitions in fiscal 2026, including its two largest to date, Brownline and E2S.
Bayer AG returned 27.8% on the list since its January 2026 addition, after a U.S. Supreme Court ruling described in the report as "a big step to move past a decade of litigation risk."
Belgian brewer Anheuser-Busch InBev has gained 19.2% since June 2025, while German telecoms group Deutsche Telekom has fallen 15.1% since October 2025.
