Deutsche Bank has named four UK-listed stocks as preferred European holdings for the fourth quarter, spanning leisure, tobacco, financials and consumer goods.
Entain PLC (LSE:ENT) tops the broker’s leisure and hotels selections, carrying a buy rating and a 914p price target based on sustained online momentum.
The gambling group has delivered nine consecutive quarters of online growth, with its Ladbrokes and Coral brands posting positive UK growth for 10 straight quarters.
Deutsche Bank also sees potential merger and acquisition activity in the gambling sector as a further catalyst for Entain’s shares in the months ahead.
The broker forecasts Entain’s free cash flow to exceed £500 million by 2028, supported by improving earnings, rising BetMGM distributions and the conclusion of deferred prosecution agreement payments.
British American Tobacco PLC (LSE:BATS) retains its place in Deutsche Bank’s consumer staples selections, with a buy recommendation and a 5,100p price target attached.
The broker expects BAT to return to sustainable growth while increasing contributions from smoke-free products, with leverage moving back within its stated target range.
Deutsche Bank forecasts that improved leverage could create capacity for annual share buybacks of as much as £3 billion, alongside a 2027 dividend yield of around 6% and a free cash flow yield of approximately 9%.
ICG PLC (LSE:ICG) has been elevated to Deutsche Bank’s preferred diversified financial stock, replacing Euronext from the previous quarter, with a 2,800p price target.
The broker forecasts first-half fee-related earnings of £205 million for ICG, running 9% ahead of market consensus, while also expecting the alternative asset manager to move into a small net cash position.
Deutsche Bank sees potential upside from ICG’s November first-half results and the possibility of a new share buyback announcement from the company.
Coca-Cola HBC AG (LSE:CCH) also remains among the broker’s preferred consumer names, with Deutsche Bank pointing to organic growth, margin expansion and exposure to emerging markets including Nigeria and Egypt.
The broker holds a 5,725p target on the drinks bottler and expects its acquisition of Coca-Cola Beverages Africa to deepen its presence in markets with growing populations and low soft-drink penetration.
Beyond the four UK names, Deutsche Bank made several other adjustments to its European quarterly list, removing Barclays in favour of ING and replacing Bunzl with French engineering services group SPIE.
International Airlines Group was also dropped from the banking selections, giving way to airport operator Groupe ADP, while names including Safran, Volkswagen, Siemens Energy, Adidas, SAP, RWE, Thyssenkrupp and pharmaceutical group UCB were retained or added to the list.
