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Investing.com - Jefferies identifies 15 European stocks positioned for recovery as geopolitical tensions show signs of easing following airstrikes against Iran that began after market close on February 27, 2026. Global equities fell roughly 5% from their peak, with European markets underperforming broader indices.
The firm’s analysis covers more than 800 stocks in its European coverage universe, focusing on large-cap, liquid names trading below recent highs. Energy remains the only sector posting positive absolute returns since late February, while consumer and cyclical sectors underperformed on stagflationary expectations.
Jefferies highlights ArcelorMittal (AMS:MT), Carlsberg (CSE:CARLB), Credit Agricole (EPA:ACA), Diageo (LSE:DGE), EssilorLuxottica (EPA:EL), Ferrari (NYSE:RACE), Heineken (AMS:HEIA), Inditex (BME:ITX), Infineon (ETR:IFX), and Rheinmetall (ETR:RHM) among its top picks. The firm maintains underweight positions ranging from 20% to 62% across these names.
Additional opportunities include Rolls-Royce (LSE:RR), Saint-Gobain (EPA:SGO), Segro (LSE:SGRO), Siemens (ETR:SIE), and Siemens Healthineers (ETR:SHL). Jefferies cites factors including management turnarounds, strategic repositioning, and structural market tailwinds supporting these selections.
The firm notes global equities entered 2026 with record low volatility before the conflict began. Jefferies expects a sharp snapback in affected stocks if geopolitical tensions continue to ease, though it acknowledges long-term consequences of the current conflict remain difficult to assess.
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