Jefferies Names 6 Key European Mid-Cap Stocks for 2026

Jefferies Outlines European Mid-Cap Opportunities

Jefferies analysts have identified compelling investment opportunities within European mid-cap stocks leading into 2026. The brokerage highlighted six key themes and a corresponding stock for each, signaling strong potential for growth.

Key Investment Themes

The primary themes driving these selections include factory automation to address labor shortages and rising demand for data centers fueled by AI. Other notable areas are German economic recovery, undervalued structural winners, and oversold cyclical stocks with recovery potential.

Highlighted Companies and Outlook

Among the selected companies, Interroll is noted for its role in warehouse automation. Belimo is expected to benefit from data center growth, particularly with advancements in liquid cooling. Meanwhile, Bechtle is positioned to gain from Germany's fiscal stimulus programs due to its strong public sector engagement.

Summary

Jefferies' analysis suggests that targeted investments in European mid-caps, aligned with major economic and technological trends, offer significant upside potential for investors looking toward 2026.

FAQ

Q: Which companies did Jefferies highlight?
A: The highlighted stocks include Interroll, InPost, Belimo, Bechtle, Arcadis, and Sulzer.

Q: What are the main growth drivers mentioned?
A: Major drivers include factory automation, AI-driven data center demand, German fiscal stimulus, and the recovery of undervalued cyclical stocks.

Source: Investing.com