In this article, we will discuss 10 Best European Stocks to Buy According to Analysts.
When it comes to European stocks and foreign equities, billionaires and hedge fund managers often see something the broader market overlooks: value hiding in plain sight. After more than a decade of U.S. stock market dominance, driven largely by mega-cap technology, many international markets now trade at significantly lower valuations, creating what smart money increasingly views as one of the most compelling rotation opportunities in global investing.
For elite investors, this is not simply a bet against America. It is a bet on mean reversion, diversification, and price discipline. While U.S. equities have commanded premium multiples, many European companies offer lower forward price-to-earnings ratios, higher dividend yields, and globally diversified revenue streams. That kind of disconnect tends to attract investors in the mold of Warren Buffett and Seth Klarman, who have long emphasized buying quality businesses when sentiment is subdued.
Europe also offers a roster of world-class corporate champions that many investors underestimate. Many European companies dominate their industries globally, yet often trade at valuations below comparable U.S. peers. For hedge funds, that combination of quality and relative affordability can be difficult to ignore.
There is also a growing risk-management case for looking abroad. Investors like Ray Dalio have long argued that geographic diversification matters, especially when U.S. indexes become increasingly concentrated in a handful of names. Foreign stocks can provide exposure to different economic cycles, currencies, and sector mixes.
The bottom line? European and international stocks may lack the glamour of Silicon Valley, but they offer something many crowded U.S. trades no longer do: attractive valuations, income potential, and room for rerating. For hedge funds seeking the next rotation, that opportunity is becoming harder to dismiss.
With this context in mind, here is a list of some of the best European stocks to buy now.
Our Methodology
We used screeners to identify the largest European stocks by their market capitalization, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best European Stocks to Buy According to Analysts
Rio Tinto Group (NYSE:RIO)
On April 13, Citi raised its price target on Rio Tinto Group (NYSE:RIO) to 7,200 GBp from 7,000 GBp while maintaining a Neutral rating.
Just days earlier, on April 10, Morgan Stanley analyst Alain Gabriel also lifted his target on Rio Tinto Group to 6,900 GBp from 6,330 GBp and kept an Equal Weight rating. While both firms stopped short of outright bullish calls, the target increases are notable because they reflect improving expectations for one of the world’s premier mining companies amid resilient commodity demand and long-term structural needs for metals tied to electrification, infrastructure, and industrial growth.
Rio Tinto Group is one of the most diversified mining groups globally, with operations spanning iron ore, copper, aluminum, lithium, and other critical minerals. Headquartered in London and operating as a dual-listed company with Rio Tinto plc in London and Rio Tinto Ltd in Melbourne, the company traces its origins to 1873. Its scale, geographic diversity, and low-cost asset base have made it one of the most durable names in the global resources sector.
What makes Rio Tinto Group especially compelling as an investment is the quality of its assets. The company owns world-class iron ore operations that generate substantial cash flow, while also expanding exposure to copper and lithium—two metals increasingly central to electric vehicles, renewable energy grids, and battery storage. This gives Rio Tinto a blend of current income power and future-facing growth potential, ranking it among the best European stocks to buy according to analysts.
9. Unilever PLC (NYSE:UL)
On April 14, Bank of America reinstated coverage of Unilever PLC (NYSE:UL) with a Buy rating and a 5,300 GBp price target. The bank’s constructive stance was driven by the company’s successful repositioning in the United States toward faster-growing wellbeing and personal care categories, its dominant competitive position in India, and a valuation it now views as compelling.
Earlier, on April 9, DZ Bank analyst Axel Herlinghaus upgraded Unilever PLC to Buy from Hold with a 5,250 GBp target, adding to improving sentiment surrounding the shares. These analyst upgrades are significant because Unilever has traditionally been viewed as a dependable but slower-growth consumer staples business. When multiple firms simultaneously emphasize transformation initiatives, exposure to higher-growth emerging markets, and valuation upside, it often suggests that earnings momentum may be improving more meaningfully than the market had previously anticipated.
Unilever PLC, officially established in 1930 and headquartered in London, is one of the world’s largest fast-moving consumer goods companies. Its brand portfolio includes Dove, Knorr, Rexona, Magnum, Hellmann’s, and Lifebuoy. The company operates through four principal divisions: Beauty & Wellbeing, Personal Care, Home Care, and Foods.
Unilever PLC appears attractive for long-term investors because it combines defensive consumer staples characteristics with improving growth prospects. Its shift toward premium personal care and wellbeing categories can support stronger margins, while leadership in India offers exposure to one of the world’s most compelling consumer growth markets. With valuation still seen as reasonable by analysts and sentiment turning more positive, Unilever may offer a balanced combination of resilience, income potential, and upside re-rating potential.
8. Chubb Limited (NYSE:CB)
On April 14, Bank of America lowered the firm’s price target on Chubb Limited (NYSE:CB) to $271 from $286 while maintaining an Underperform rating. The revision reflected adjustments across its U.S. insurance coverage universe tied to fourth-quarter events and changes in peer valuation multiples.
On April 8, Barclays PLC raised its price target on Chubb Limited to $374 from $339 and maintained an Equal Weight rating. As part of a broader insurance sector preview, the firm noted that premium growth and broker organic growth are likely to remain sluggish. However, Barclays also highlighted solid margins and strong capital deployment, which should continue supporting reported book value growth.
Chubb Limited is a global provider of insurance products, including property and casualty, accident and health, reinsurance, and life insurance. It is the world’s largest publicly traded property and casualty insurer, operating in 54 countries and territories. The company is incorporated in Zürich, with corporate roots dating back to 1792.
Chubb Limited is among the best European stocks to buy according to analysts because even cautious analyst commentary acknowledges the company’s strong profitability and disciplined capital allocation. In insurance, consistent book value growth and underwriting margins are critical long-term value drivers. Chubb’s scale, global diversification, and conservative balance sheet position it well to navigate slower premium growth while still compounding shareholder value through pricing discipline, buybacks, and efficient deployment of capital.
7. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
On April 16, JPMorgan Chase & Co. raised the firm’s price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 23.60 from EUR 23.30 and maintained an Overweight rating on the shares.
On March 10, JPMorgan had previously lowered its price target on Banco Bilbao Vizcaya Argentaria, S.A. to EUR 23.30 from EUR 23.50 while still maintaining an Overweight rating. The subsequent upward revision suggests analyst confidence has improved following updated assumptions or stronger operating trends.
Banco Bilbao Vizcaya Argentaria, S.A. is a leading Spanish multinational financial services group founded in 1857. Headquartered in Bilbao, with operating headquarters in Madrid, the bank provides retail, corporate, and investment banking services with a strong digital focus across Spain, Mexico, Turkey, and South America.
Banco Bilbao Vizcaya Argentaria, S.A. may appeal to investors seeking international banking exposure because the reaffirmed Overweight stance indicates continued confidence in earnings power and valuation. Its geographic diversification provides access to faster-growing emerging markets, particularly Mexico, while its digital banking capabilities can improve efficiency and customer retention. If interest rates remain supportive and credit quality stays stable, BBVA could continue generating attractive returns on capital.
6. Novo Nordisk A/S (NYSE:NVO)
On April 17, Citigroup Inc. lowered the firm’s price target on Novo Nordisk A/S (NYSE:NVO) to DKK 275 from DKK 309 while maintaining a Neutral rating on the shares. Although the target was reduced, the continued coverage reflects ongoing institutional focus on one of the global leaders in diabetes and obesity treatment.
The same day, market data reported mixed options sentiment in Novo Nordisk A/S shares, with call activity exceeding put volume and a put/call ratio below typical levels. Implied volatility moderated but remained above its 52-week median, while downside hedging demand increased. This combination suggests investors remain actively engaged in the stock while balancing optimism with near-term caution ahead of future catalysts.
Novo Nordisk A/S is a global healthcare company specializing in the research, development, and manufacturing of pharmaceutical products, with a primary focus on treating diabetes and obesity. It is headquartered in Bagsværd, Denmark, and was founded in 1923.
Novo Nordisk A/S remains a compelling long-term healthcare investment because short-term valuation resets do little to change the structural growth opportunity in obesity and diabetes care. Sixth among the 10 best European stocks to buy according to analysts, the company commands leading brands, deep research expertise, and global scale in markets that continue expanding rapidly. While analyst targets may fluctuate, long-duration demand trends and continued innovation can support sustained earnings growth over time.
5. Eaton Corporation plc (NYSE:ETN)
On April 13, Citigroup Inc. raised the firm’s price target on Eaton Corporation plc (NYSE:ETN) to $464 from $435 while maintaining a Buy rating. The firm updated targets across the industrial sector and stated that gradually improving industrial trends remain intact, which should support solid first-quarter earnings across many names in the group.
On April 8, Eaton Corporation plc (NYSE:ETN) announced an investment of more than $30 million to expand U.S. production of medium-voltage switchgear used to protect, control, and isolate electrical systems in data centers, utilities, and industrial power networks. The company will open a new manufacturing facility near Omaha, Nebraska, designed to support the high-volume and speed requirements of artificial intelligence data center customers.
Eaton Corporation plc (NYSE:ETN) is a global intelligent power management company that provides energy-efficient solutions for electrical, aerospace, and vehicle applications. The company is formally headquartered in Dublin while maintaining significant operational headquarters in Beachwood. Eaton was founded in 1911.
4. Arm Holdings plc (NASDAQ:ARM)
On April 16, Susquehanna International Group raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) to $210 from $170 and maintained a Positive rating. The firm updated its model ahead of quarterly results, expecting ARM-based CPU royalties to partially offset continued weakness in smartphone-related royalty revenue. Susquehanna also sees attractive risk/reward supported by long-term total addressable market expansion from AI and advanced computing opportunities.
On April 8, Goldman Sachs Group, Inc. raised its price target on Arm Holdings plc (NASDAQ:ARM) to $125 from $110 while maintaining a Sell rating. The firm acknowledged strong fundamentals across the semiconductor ecosystem and noted that Arm remains well positioned in key growth markets, even as it cited valuation concerns following the stock’s sharp rally.
Arm Holdings plc (NASDAQ:ARM) is a British semiconductor and software design company that licenses energy-efficient processor architectures powering more than 99% of smartphones globally. Founded in 1990 and headquartered in Cambridge, the company generates high-margin royalty revenue through a vast partner ecosystem spanning many of the world’s leading technology companies.
Arm Holdings plc (NASDAQ:ARM) stands out as an investment opportunity because even analysts with differing valuation views recognize its strategic importance. Its royalty-driven model offers scalability, while expansion into AI servers, edge devices, automotive computing, and custom silicon broadens future revenue streams. As power efficiency becomes increasingly critical across computing workloads, Arm’s architecture could remain central to the next generation of semiconductor growth.
3. SAP SE (NYSE:SAP)
On April 20, Barclays PLC lowered the firm’s price target on SAP SE (NYSE:SAP) to $256 from $283 while maintaining an Overweight rating. The adjustment came as part of a first-quarter software earnings preview. Barclays noted that the first quarter is seasonally the smallest period and that macroeconomic conditions were not especially supportive, while expecting more meaningful fundamental improvement later in the year.
On April 15, TD Cowen analyst Derrick Wood lowered the price target on SAP SE to $250 from $300 while reiterating a Buy rating. The firm cited mixed channel checks, with enterprise demand remaining solid but commercial trends softening sequentially amid emerging macro uncertainties, particularly in energy-related verticals and the Middle East. The analyst also pointed to possible pricing changes that could create short-term disruption.
SAP SE is a German multinational software corporation specializing in enterprise application software, particularly Enterprise Resource Planning systems. The company is headquartered in Walldorf and was founded in 1972.
SAP SE is among the best European stocks to buy according to analysts because, despite cautious near-term commentary, analysts continue to maintain positive ratings. Temporary macro softness does not diminish the company’s entrenched customer relationships, mission-critical software suite, and ongoing cloud transformation. As enterprise IT spending normalizes and recurring cloud revenue expands, SAP could benefit from improving margins and more durable long-term growth.
2. Linde plc (NASDAQ:LIN)
On April 17, Seaport Research Partners raised the firm’s price target on Linde plc (NASDAQ:LIN) to $575 from $525 while maintaining a Buy rating on the shares.
On April 13, Citigroup Inc. analyst Patrick Cunningham raised the firm’s price target on Linde plc (NASDAQ:LIN) to $580 from $545 and maintained a Buy rating. The firm updated targets in the specialty chemicals group and stated a preference for industrial gas exposure, noting that the sector is relatively insulated from inflationary pressures.
Linde plc (NASDAQ:LIN) produces and distributes atmospheric gases such as oxygen, nitrogen, argon, and rare gases, along with process gases including hydrogen, helium, carbon dioxide, and electronic gases. The company serves healthcare, chemicals, energy, manufacturing, electronics, and food and beverage industries. Linde is incorporated in Dublin and was founded in 1879.
Linde plc (NASDAQ:LIN) appears attractive because multiple analysts are raising targets while emphasizing the defensive qualities of industrial gas exposure. Its long-term contracts, mission-critical products, and diversified end markets often produce resilient cash flows even in uncertain environments. In addition, exposure to electronics, clean hydrogen, and healthcare provides structural growth drivers that can complement its already stable core business.
1. ASML Holding N.V. (NASDAQ:ASML)
On April 17, Freedom Broker analyst Egor Tolmachev upgraded ASML Holding N.V. (NASDAQ:ASML) to Buy from Hold while sharply increasing the firm’s price target to $1,650 from $950. The upgrade followed what the analyst described as a broad-based first-quarter earnings beat, which improved visibility into the company’s near-term operating trajectory. According to the research note, the results reinforce the view that ASML remains one of the clearest beneficiaries of the ongoing artificial intelligence-driven semiconductor investment cycle. Freedom Broker also highlighted what it characterized as durable demand signals, suggesting customers continue to prioritize spending on the company’s mission-critical lithography systems despite broader macroeconomic uncertainty.
On April 16, Susquehanna International Group analyst Mehdi Hosseini raised the firm’s price target on ASML Holding N.V. to EUR 1,475 from EUR 1,450 and maintained a Positive rating on the shares. The revision came after the company’s first-quarter earnings release and an updated 2026 outlook that pointed to stronger memory-related capital expenditures. Susquehanna also cited upside potential in immersion system shipments, along with incremental 2026 investment plans from select integrated device manufacturers. These developments indicate that spending momentum is broadening beyond logic chips and into additional semiconductor end markets, strengthening ASML’s long-term order pipeline.
ASML Holding N.V. is a Netherlands-based technology company that maintains a near-monopoly in the advanced lithography equipment required to manufacture leading-edge semiconductors. Its systems are essential for producing the world’s most sophisticated chips used in artificial intelligence, smartphones, data centers, and automotive applications. The company is headquartered in Veldhoven and was founded in 1984. As artificial intelligence infrastructure buildouts accelerate worldwide, ASML remains one of the most compelling ways for investors to gain exposure to the next wave of semiconductor expansion.
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