Goldman Sachs loves these 4 top European stocks — giving one 110% upside

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Goldman Sachs BDC Inc,FTSE 100,S&P 500 Index

The Wall Street bank says U.K. stocks have 'low valuation, buyback, and diversification characteristics.'

Four U.K.-listed stocks — one of which was given 110% upside — are among Goldman Sachs' European conviction list. The Wall Street bank is backing British stocks to diversify global portfolios after London-listed equities "proved resilient" even during the market correction in early August. While the S & P 500 fell by 5.85% in the first week of August, the FTSE 100, an index of the 100 largest London-listed stocks, outperformed by falling by only 2.4%. .FTSE .

World . We also like FTSE 100 for its low valuation, buyback, and diversification characteristics," Goldman strategists led by Sharon Bell said in a note to clients on Sept. 2. Goldman's bullish view is noteworthy given the U.K. stock market's decade-long underperformance — its weight in the World index dropped from 5.3% in 2010 to a mere 2.2% currently. The bank named BT Group , Rolls-Royce , SSE and the London Stock Exchange as four "attractive" stocks, based on fundamental equity analysis. All four stocks are also traded over the counter in the United States. BT The Wall Street bank views telecom giant BT Group favorably, given the potential for fiber deregulation in the U.K. to drive earnings growth.

Goldman says it believes London Stock Exchange Group has AI-related growth potential. owns Bloomberg-competitor Refinitiv, which has partnered with Microsoft to enable AI in its products. The investment bank said the company "is at the start of a revenue acceleration" supported by increasing market share and expansion into new markets.

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