Goldman Sachs has altered the composition of its European Conviction List in the July 2026 Directors' Cut, bringing two new names onto the list and taking three off. TGS ASA, the Norwegian seismic-data company, and Halma Plc, the UK-based multi-industry group, were added. Bayer AG, Anheuser-Busch InBev and Deutsche Telekom were removed from the 27-stock selection of the broker's most differentiated buy recommendations.
The broker reports that the updated list retains a median 12-month total return potential of 32% and a median upside to price target of 29%, calculations made using closing prices as of June 30. The Directors' Cut update reflects Goldman Sachs' view on companies it judges capable of delivering differentiated returns within Europe.
TGS ASA - early oil capex beneficiary, according to analysts
Goldman Sachs highlighted TGS ASA as a likely early beneficiary of rising oil capital expenditure and a renewed focus on frontier investment, writing that TGS should be "one of the earliest beneficiaries of oil capex increasing and the return to frontier investment." The note cites structural pressures on reserve life - down approximately 60% after a decade of underinvestment and the maturation of U.S. shale - as supportive of that view.
The analysts assigned a 12-month price target of 180 Norwegian crowns for TGS, derived from 3.5 times estimated 2027 EV/EBITDA. With the stock closing at 128.90 crowns on June 30, Goldman Sachs calculates implied upside of about 40%. The company has a market capitalization of .23 billion.
Goldman Sachs' forecast for TGS anticipates strong top-line momentum in the firm's multi-client division - roughly 60% of overall sales - projecting 19% year-on-year growth in fiscal 2026 versus a consensus of 8%. The broker also models contract-division revenue increases of 19% in fiscal 2027 and 7% in fiscal 2028, compared with consensus forecasts of 8% and 15% respectively.
On valuation metrics, TGS trades at 3.1 times 12-month forward EV/EBITDA, which Goldman Sachs notes is below its through-the-cycle average of 3.5 times. The note also points to a long-term reduction in vessel capacity for the seismic sector, estimating a decline of about 70% since 2013.
Halma Plc - quality growth and a recent buying opportunity
Halma is described in the update as "one of the highest-quality, highest-return growth compounders with a proven track record," with analysts observing only one year in the past 20 in which three-year trailing EPS growth slipped below 8%. Goldman Sachs set a 12-month price target of 5,010 pence using a sector-relative EV/IC to ROIC/WACC methodology. The stock closed at 3,934 pence on June 30, which implies about 27% upside to that target. Halma's market capitalization stands at 7.23 billion.
Analysts expect Halma to deliver group EPS growth of more than 14% over the next three years, versus consensus at 11.8%. The broker projects strong growth in Halma's Photonics division, which accounts for roughly 20% of revenues, forecasting 39% growth in fiscal 2027.
Goldman Sachs also highlighted that the roughly 15% decline in Halma's share price following fiscal 2026 results - attributed to weaker-than-expected Photonics guidance - provided a compelling entry point. The firm completed five acquisitions in fiscal 2026, including its two largest deals to date, Brownline and E2S.
Removals and recent performance notes
Bayer AG, Anheuser-Busch InBev and Deutsche Telekom were taken off the Conviction List in this round. Bayer had returned 27.8% while it was on the list since its January 2026 inclusion, a performance that Goldman Sachs linked to a U.S. Supreme Court ruling the report described as "a big step to move past a decade of litigation risk."
Anheuser-Busch InBev had gained 19.2% since June 2025 prior to its removal, according to Goldman Sachs' summary. Deutsche Telekom had underperformed, falling 15.1% since October 2025, and was also removed from the roster.
The July Directors' Cut thus reflects Goldman Sachs' shifting convictions across energy-related services, niche industrial growth, consumer-beverage and telecommunications stocks within Europe. The repositioning leaves the Conviction List with a headline median return profile that the bank presents as an attractive risk-reward snapshot as of the end of June.