6 Stocks with ‘Positive Catalysts’ Heading into Earnings Season

As we head into July and earnings season in Europe, Jefferies has come out with a note covering six stocks that it thinks may offer positive surprises and four that it believes might disappoint.

Here’s a quick look at the six it’s got buy ratings on and a summary of Jefferies’ thesis for each.

Assa Abloy - Recovery in cyclical segments and margin upside from stabilizing residential markets support a re-rating from depressed levels. 

Croda - Volume inflection and margin-led earnings beat expected; valuation discount to history offers re-rating potential. 

Heineken - Improving 2Q volumes led by Emerging Markets should increase confidence in operational delivery and FY guidance. 

Lloyds - We believe an unfavorable outcome in the upcoming Supreme Court judgment is unlikely, leaving risk / reward skewed to the upside. 

Pandora - Strong US LFLs and margin resilience despite macro headwinds support the case for continued re-rating. 

Saint-Gobain - October capital markets day expected to reset growth targets and align valuation with higher-quality peers. 

And the four it’s more worried about in the near term with its reasoning.

Dassault Systèmes - Weak 1H trends and limited big deal visibility challenge FY guide; valuation remains stretched amid macro uncertainty. 

Eurofins - Muted growth, margin headwinds, and cautious FCF outlook keep valuation unattractive despite sector de-rating. 

Lanxess - Weak end markets and high leverage drive downside risk; consensus downgrades as stimulus benefits remain distant. 

Sodexo - Structural challenges and weak execution weigh on growth; Q3 update may further reset expectations.