Top 5 Retail Stocks for 2026 According to Evercore ISI

Investing.com -- Comet was upgraded to “buy” from “neutral” rating with a new price target of CHF252, up from CHF199, driven by significantly stronger expectations for the semiconductor equipment market and the resulting projected lift to the company’s revenues and profitability, according to the UBS in a note dated Monday.

The upgrade is tied to newly revised forecasts from UBS’ global semiconductor team, which now expects wafer fab equipment spending to reach $114 billion, $139 billion and $148 billion in 2025, 2026 and 2027, representing 17%, 22% and 6% year-over-year growth.  

These spending levels, described in the report as “unseen in the past,” are expected to support demand for Comet’s semiconductor-focused Plasma Control Technologies segment, which has historically shown a close relationship between wafer fab equipment spending trends and organic sales performance. 

The brokerage states that PCT contributes 47% of group sales and 81% of EBITDA on average, giving the semiconductor cycle significant weight in Comet’s financial trajectory. 

UBS now anticipates an organic sales compound annual growth rate for the segment of roughly 19% between fiscal years 2025 and 2029, compared with about 10% over the last decade. 

These revenue expectations support a material improvement in profitability. The report projects a group EBITDA margin increase to 23.6% by FY29, compared with 11.5% in FY25, driven by operating leverage and a rising share of sales from the higher-margin semiconductor division. 

At the group level, UBS estimates a 16% organic sales CAGR from FY25-29, along with revenue growth from CHF464 million in FY25 to CHF800 million in FY29.  

The analysts describe the current share price as inconsistent with those growth prospects, citing a reverse-DCF indication that the market is pricing in materially lower expectations. 

The revised DCF valuation, maintaining a long-term 2.5% sales growth assumption and a 7.9% WACC, yields the new CHF252 price target. 

The brokerage flags that semiconductor equipment manufacturers Lam Research and Applied Materials, identified as major customers for Comet’s PCT business, have also seen significant upward revisions to projected system revenues, further reinforcing the expected demand outlook. 

The analysts note that, based on UBS estimates and recent share prices, Comet trades at an EV/EBIT multiple of 18.3x for next year, above its long-term historical average, which UBS says reflects the upgrade’s assumptions for stronger financial performance. 

Investing.com -- European transport stocks are showing promising growth potential for 2026, with freight forwarding and airline companies leading the sector, according to a recent JPMorgan analysis.

Get more stock picks by Wall Street analysts by upgrading to InvestingPro - get 60% off today

The investment bank has identified key players that are well-positioned to deliver strong performance despite varying market conditions.

DSV and International Airlines Group ( stand out as the top contenders in the European transport sector, with both companies demonstrating resilient business models and strategic initiatives that could drive significant value for investors.

DSV

The Danish freight forwarding giant tops JPMorgan’s list with a compelling investment case. DSV is accelerating the integration of Schenker, now targeting 30% completion by 2025 and 70% by 2026, significantly ahead of previous timelines.

The company has negotiated an earlier integration in Germany, with implementation set for January 1, 2026, substantially shortening the previously expected two-year social constraint period.

JPMorgan values DSV with a price target of DKK 2,130, based on a blend of DCF and EV/EBIT multiples. The shares trade at less than 15x 2027 estimated P/E, which analysts view as attractive given the forecasted 28% forward EPS CAGR between 2025-2028.

The company’s asset-light business model, performance-driven culture, and focus on free cash flow are expected to enable an earlier resumption of its share buyback program, potentially starting in 2027.

IAG

The parent company of British Airways, Iberia, and other airlines is the second JPMorgan top pick for 2026.

IAG is expected to benefit from improving revenue and cost trajectories heading into Q4, with underlying pricing improvements driven by strengthening Transatlantic US economy point-of-sale and year-over-year decreases in ex-fuel cost per available seat kilometer.

JPMorgan highlights IAG’s favorable supply-demand dynamics among European flag carriers, particularly in the UK-US market where capacity is projected to decrease in coming quarters.

The company is maintaining some of the highest margins in the sector, expected to reach approximately 15% in 2025, with potential upside into 2026 driven by the BA transformation program.

With a strong financial position (JPMorgan estimates 2025 net debt/EBITDA at 1x), analysts anticipate a new share buyback announcement at the full-year 2025 results in early 2026, potentially amounting to €1.5 billion or 8% of market capitalization.

JPMorgan’s December 2027 price target for IAG is €6, based on target multiples applied to 2028 forecasts.

Both companies face sector-specific challenges, including potential market volatility and competitive pressures, but JPMorgan believes their strategic positioning and self-help initiatives provide a buffer against broader industry headwinds.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com – India stocks were lower after the close on Monday, as losses in the Real Estate, Fast Moving Consumer Goods and Healthcare sectors led shares lower.

At the close in NSE, the Nifty 50 fell 0.10%, while the BSE Sensex 30 index lost 0.08%.

The best performers of the session on the Nifty 50 were UltraTech Cement Ltd (NSE:ULTC), which rose 3.56% or 413.00 points to trade at 12,013.00 at the close. Meanwhile, Hero MotoCorp Ltd (NSE:HROM) added 2.03% or 125.50 points to end at 6,300.00 and Tata Motors Ltd (NSE:TAMO) was up 1.74% or 6.20 points to 363.00 in late trade.

The worst performers of the session were Bajaj Finance Ltd (NSE:BJFN), which fell 1.69% or 17.50 points to trade at 1,020.00 at the close. IndusInd Bank Ltd. (NSE:INBK) declined 1.53% or 13.10 points to end at 845.45 and Sun Pharmaceutical Industries Ltd. (NSE:SUN) was down 1.23% or 22.60 points to 1,809.00.

The top performers on the BSE Sensex 30 were Tata Motors Ltd (BO:TAMO) which rose 1.86% to 363.50, Maruti Suzuki India Ltd. (BO:MRTI) which was up 1.37% to settle at 16,111.90 and Kotak Mahindra Bank Ltd. (BO:KTKM) which gained 1.21% to close at 2,149.70.

The worst performers were Bajaj Finance Ltd (BO:BJFN) which was down 1.77% to 1,019.25 in late trade, IndusInd Bank Ltd. (BO:INBK) which lost 1.50% to settle at 845.45 and Sun Pharmaceutical Industries Ltd. (BO:SUN) which was down 1.15% to 1,810.25 at the close.

Falling stocks outnumbered advancing ones on the India National Stock Exchange by 1459 to 1035 and 50 ended unchanged; on the Bombay Stock Exchange, 2307 fell and 1744 advanced, while 186 ended unchanged.

Shares in Hero MotoCorp Ltd (NSE:HROM) rose to all time highs; up 2.03% or 125.50 to 6,300.00.

The India VIX, which measures the implied volatility of Nifty 50 options, was down 0.30% to 11.58 a new 1-month low.

Gold Futures for February delivery was up 0.78% or 33.40 to $4,288.30 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 1.69% or 0.99 to hit $59.54 a barrel, while the February Brent oil contract rose 1.60% or 1.00 to trade at $63.38 a barrel.

USD/INR was up 0.23% to 89.55, while EUR/INR rose 0.45% to 104.08.

The US Dollar Index Futures was down 0.20% at 99.21.

Investing.com -- The S&P 500 is entering December with improving technical underpinnings that support the prospect of a seasonal year-end upswing, according to Bank of America strategist Paul Ciana.

Unlock more analyst-driven technical signals and market outlooks by upgrading to InvestingPro - get 60% off today

“While price is above the Nov 26 bullish gap 6776-6784 and/or rising 50d SMA, it looks favorable for a Santa rally to commence,” Ciana said.

The index rebounded during Thanksgiving week after a correction of nearly 6% from the year’s high. That move created a bullish gap on November 26 in the 6,776–6,784 zone, which Ciana views as the first layer of support heading into December.

Resistance levels sit near 6,868, 6,920 and 7,000, BofA highlighted.

Seasonality is another supportive factor as the S&P 500 has historically risen 73% of the time in December, averaging a 1.28% gain. The pattern is even stronger when the index ends November in positive territory for the year, with December gains occurring 81% of the time at an average of 2.14%.

The backdrop is most favorable in the first year of the U.S. presidential cycle, when Ciana notes that December has been up “13 of 13 times on average +2.03%.”

Small caps also tend to outperform during the month, while the Nasdaq often lags, with the strongest weeks typically coming in the back half of December.

Beyond equities, BofA flags a cyclical downtrend in the U.S. 10-year Treasury yield, which remains range-bound between 3.93% and 4.16%. Momentum is mixed, and a close below 3.93% would confirm that “wave 3 down is still underway.”

But Ciana also flags two upside risks that could shift the pattern: the consolidation since September could still resolve into a bottoming formation, and the absence of a lower low in the second half of 2025 — relative to April’s 3.86% — leaves open the possibility that the multi-year triangle top evolves into an uptrend continuation pattern.

In currencies, the U.S. dollar index remains stuck in its six-month range and has failed twice at resistance near recent highs. Ciana says a breakout is needed to confirm a larger double-bottom formation, while soft December seasonality creates headwinds.

Gold, meanwhile, has begun to break higher from a triangle consolidation pattern. The metal is testing resistance at $4,245, with the strategist noting supportive oscillators and year-end seasonality.

A move above that level could open the way toward a retest of the all-time high at $4,382 and potentially the $4,500–4,525 area.

Investing.com -- European airline stocks under J.P. Morgan coverage faces mounting pressure from rising short-haul capacity and slowing pricing momentum heading into 2026, according to a note dated Monday.

The brokerage flags oversupply as a central risk for low-cost carriers while identifying stronger prospects among European flag carriers and long-haul operators. 

J.P. Morgan forecasts total European airline seat supply growth of about 5% year over year in 2026, with narrow-body capacity up 6.3% and wide-body capacity rising 4%, driven by accelerating aircraft deliveries.

The brokerage states that pricing has begun to soften after post-pandemic surges, particularly in low-cost markets, with average unit revenue for LCCs projected to decline 0.5% in 2026, while flag carrier pricing is expected to increase 0.5% due to more constrained long-haul supply and stronger premium demand. 

The analysts model sector EBIT margin expansion of 60 basis points in 2026, supported by falling fuel costs, but still below the near 10% pre-pandemic average.

Among individual stocks, International Consolidated Airlines Group, parent of British Airways and Iberia, is J.P. Morgan’s preferred exposure. 

The brokerage reiterates an “overweight” rating and keeps the airline on the Analyst Focus List, citing what it views as the best demand-supply positioning into 2026 and strong free-cash-flow potential. J.P. Morgan assigns a €6 price target, implying 32% upside from the Nov. 27 market close.

Air France-KLM is upgraded to “overweight” from “neutral” with a €14 price target, also 32% upside, on what the report cites as potential earnings improvement from long-haul demand and lower structural costs. 

German carrier Lufthansa receives an upgrade to “neutral” from “underweight” with a €7.5 target, representing 8% downside, reflecting what analysts call improving economic and operational conditions but continued execution risk surrounding restructuring.

Budget carriers are assessed more critically. J.P. Morgan downgrades easyJet to “underweight” from “neutral” with a 400p target (18% downside), citing expected pricing pressure from aggressive capacity expansion and new route investments pushing up near-term costs. 

Jet2 is cut to “neutral” from “overweight” with a 1,450p target (2% upside), based on expected earnings pressure tied to growth-related capex and the launch of its Gatwick base.

Low-cost leader Ryanair retains an “overweight” rating, with a €33.5 target (17% upside), supported by unit-cost discipline and high free-cash-flow generation. Wizz Air is maintained at Neutral with a 1,200p target after what analysts describe as near-term earnings risk from elevated capacity expansion.

J.P. Morgan adds that while long-haul capacity remains constrained and supportive of pricing, short-haul supply acceleration, particularly in the UK and continental leisure markets, is likely to weigh on low-cost carrier profitability in 2026. 

The brokerage projects flat unit revenue across the sector overall as supply growth outpaces demand against a backdrop of moderating macroeconomic conditions.

Investing.com -- SGS SA was downgraded to “underperform” from “sector perform” by RBC Capital Markets, with the price target cut to CHF 85 from CHF 86.50, in a note dated Monday.

RBC said the downgrade reflects growing headwinds tied to weakening global trade and a softer outlook for organic growth. 

The brokerage cited sharply reduced world merchandise trade forecasts from the WTO for 2026 and weak new export order readings in recent Global PMI data, which it called a reliable lead indicator for global trade. 

RBC lowered its FY26 organic revenue growth estimate as a result, stating it now sits about 130 basis points below consensus.

The brokerage also said momentum from sustainability-driven demand is weakening as the economic effects of related initiatives become more visible, including accelerated de-industrialisation in Europe and inflationary pressures. 

RBC said that some related regulations and targets are being softened or abandoned and expects de-prioritisation of ESG to weigh further on testing, inspection and certification services.

RBC pointed to what it described as underwhelming long-term real growth, noting that SGS’ 10-year compound annual growth rate in adjusted EBITA has been 3% in euro terms. 

The brokerage said the stock has lagged the Stoxx Europe 600 over both three-year and 10-year periods and expects that trend to continue in FY26.

The analysts said the prospect of a third consecutive year of earnings-dilutive scrip dividends adds pressure. SGS held its dividend per share flat since 2019 and offered scrips for FY23 and FY24 with an average 64% take-up. 

RBC said that with an expected dividend cover of 1.2x, another scrip in FY25 could dilute EPS by about 2% or approximately 4.3 million shares.

RBC cut its price target by 2% and said that while the implied total shareholder return downside is limited, the downgrade reflects stronger opportunities elsewhere in the Business Services sector.

The brokerage’s core price target assumptions include a 7.5% WACC, 4.5% medium-term revenue growth and a 15.9% terminal margin. The base case valuation includes about CHF 12 per share for future bolt-on M&A.

SGS shares outstanding are 189 million, with a dividend of CHF 3.20 and a market capitalization of CHF 17.4 billion.