Deutsche Bank expects seven UK stocks to do well amidst an uncertain market environment in 2025.
These include Experian, Diploma, PageGroup, Rentokil, JTC, XPS Pensions, and Renew Holdings.
Other than XPS, all of these companies are listed in the United States as well.
Within these names, the investment firm is most bullish on PageGroup PLC (LON: PAGE) that it expects will hit £55 next year.
Deutsche’s price target translates to about a 50% upside in shares of the recruitment company from current levels.
Why is Deutsche Bank positive on PageGroup stock?
Deutsche Bank is uber bullish on PageGroup as it’s a cyclical stock.
What that means is PAGE will likely recover sharply once economic activity takes off. Shares of the London-listed firm have lost about 25% over the past eight months.
The investment firm recommends buying PageGroup stock at the current discount because it has “a presence in the permanent recruitment market.”
Deutsche analysts see significant potential in PAGE for “strong positive earnings momentum when recruitment markets improve,” as per their research note on Tuesday.
In October, PageGroup reported a decline in its quarterly profit due to a hiring slowdown in a few of its key markets.
“While most markets were sequentially stable, we experienced softer activity and trading in a number of European countries, including France and Germany,” the company told investors at the time.
PAGE took a 19% hit to gross profit in its largest market (Germany) and a 16% hit to gross profit in its second-largest market (16%) in the third quarter.
Nonetheless, PageGroup shares currently pay a lucrative dividend yield of 4.43% that makes it worth owning for the long term, as per the Deutsche Bank analysts.
Deutsche Bank is also bullish on Diploma stock
Diploma PLC (LON: DPLM) shares have already rallied more than 30% since the start of 2024.
Still, experts at Deutsche Bank continue to see this supply chain and distribution stock as a “top compounder, well placed for 2025.”
The investment firm expects DPLM to maintain its operating margin at a solid 21% next year as it has a high-quality “portfolio of decentralised businesses that increasingly serve structurally growing markets.”
Deutsche likes Diploma stock as it relies predominantly on the US for production and, therefore, may prove to be resilient against a potential increase in tariffs under the Trump administration.
The bank recently raised its price target on DPLM to £51 that indicates potential for another 15% increase from current levels.
Much like PageGroup, Diploma is also a dividend-paying stock.
While its yield at 1.31% is significantly modest compared to PAGE, it, nonetheless, is attractive for those interested in generating passive income over the long term.
Last month, DPLM forecast organic revenue growth of about 6.0% for fiscal 2025.
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