Deutsche Bank presents its top picks of European equities on a quarterly basis, selecting one title per sector where analysts see potential. Seven stocks from the list include a mix of Swiss, Belgian, and German companies spanning pharmaceuticals, medical technology, consumer goods, real estate, software, industry, and automotive sectors.
Lonza remains the only Swiss stock on the list, defending its place in the Medical Technologies & Services sector. According to analysts, the latest half-year update points to sustained strength across all segments, and the stock has gained just over seven percent since the start of the year. Risks for the pharmaceutical supplier include missing forecasts, substandard product quality, increasing competition, and expiring contracts. Advantages highlighted by analysts are ongoing pharmaceutical outsourcing and high resilience, as the sector has low vulnerability to geopolitical tensions.
UCB takes over the pharma sector spot previously held by Novartis. The Belgian biopharmaceutical company produces medications for allergies, epilepsy, and autoimmune diseases. Following strong drug demand, the stock gained 196 percent across 2024 and 2025, though the shares lost nearly 30 percent from their all-time high at the beginning of the year. Analysts expect UCB to continue benefiting from strong growth of its blockbuster drug Bimzelx, which recently received a new approval for the skin condition hidradenitis suppurativa, an area with few approved global treatments. Risks noted by Deutsche Bank include new study results for Novartis' competing product remibrutinib and a lack of new products in the current pipeline.
Adidas impresses analysts with strong revenue growth, above-average market performance, and a solid new product pipeline. Since the new CEO took office, the company's revenue and profit have recovered significantly, though the stock has recorded a loss of over 14 percent since the beginning of the year. Analysts project mid-teen earnings growth per share over the next three years. Compared to competitor Nike, whose shares have declined continuously for years, the outlook is favorable, though Swiss rival On is entering the football market and threatening established players. Risks include heightened promotional spending to secure market shares.
Scout24, a German digital real estate advertising market leader, has gained an advantage over European competitors through a clearly elaborated artificial intelligence strategy. The platform operator is highly profitable and generates high cash flows, though the shares have lost over 20 percent in value since the start of the year. Macroeconomic shocks, intensive competition, management changes, and failed acquisitions represent potential risks for the online marketplace operator.
Thyssenkrupp has experienced strong share price development over the past two years, gaining nearly 440 percent despite mid-term dips such as in February 2026 due to high restructuring costs in the steel division. Investors must accept a degree of volatility, but the risk-reward ratio has improved. Analysts maintain a buy recommendation with an upside potential of 20 percent in a baseline scenario and more than 100 percent in an optimistic scenario.
Following a bear market in the first half of the year, German software company SAP has recovered, gaining 38 percent over the past 12 weeks. Software sector surveys conducted by Deutsche Bank indicate unabated demand, supporting confidence that growth will continue exceeding expectations, backed by anticipated solid third-quarter results. The upcoming transformation phase introduces share price volatility, presenting an entry opportunity for patient investors, while new market participants, particularly artificial intelligence players, pose competitive risks.
Despite a difficult industry environment, Volkswagen shares are expected by Deutsche Bank to outperform the market, despite having lost a third of their value since the beginning of the year. The German automaker faces a major transition, with CEO Oliver Blume planning to cut up to 100,000 jobs group-wide by 2030. Future performance depends on executive management successfully navigating this transformation, and the stock retains a buy recommendation from Deutsche Bank analysts.
