Bank of America strategists have listed ten European stocks that they believe are currently undervalued and could offer solid investment returns. These selections, which the investment bank dubs the “Beat Factor Top 10,” are largely made up of industrial and financial companies. Industrial companies Airbus, Thales, BAE Systems and Safran are top picks. Airbus stood out as Bank of America’s analyst price target on the company was 46% higher than the consensus forecast. Their estimates for Airbus’ earnings per share (EPS) in 2023 and 2024 were also 8% higher than consensus estimates. Bank of America analysts expect Airbus shares to rise 64% to 200 euros ($217) per share in the next 12 months. AIR-FR 1Y line The bank’s price target on Safran is nearly 30% above consensus and around 10% above consensus on Thales and BAE Systems, strategists led by Milla Savova said in a May 11 note to clients express. “Beat Factor” is a measure used by Bank of America analysts to determine the most divergent views on stocks in the FTSE Eurofirst 300. It is a quantitative approach that relies on price targets and earnings estimates rather than a qualitative approach that looks at balance sheets and earnings Reports. Airbus was also one of Bank of America’s “Top 10 Best Ideas” stocks for the second quarter. Analysts at the bank have previously said they are bullish on the company for several reasons, including improving supplies of aircraft parts. , increased demand for larger aircraft and China’s post-pandemic reopening. Financials, luxury goods, and more In financials, BNP Paribas and Credit Agricole join Bank of America’s “Beat Factor Top 10” list. BNP Paribas tops Beat Factor score Analysts’ price target for BNP Paribas was 22% higher than the average forecast, and they estimated that its earnings per share in 2023 would be 28% higher than consensus estimates. However, as of late April, the Paris-based bank The bank is also the most shorted among European banking stocks. The rest of the top 10 is diverse. They include luxury goods group Louis Vuitton Moët Hennessy, electricity company Verbund, aluminum producer Norsk Hydro and cosmetics company L’ Oreal. LVMH shares hit an all-time high following its quarterly results and are up nearly 30% this year. Despite the gains, strategists at Bank of America remain bullish on the stock’s upcoming earnings season. — CNBC’s Michael Bloom ( Michael Bloom contributed reporting.