UBS shares top European picks ahead of earnings season, incl. three small caps

UBS has named five European stocks that investors should watch ahead of the upcoming earnings season. Three of the picks are small- or mid-cap companies, while the other two are large caps. UBS sees upside of more than 50% for all five names.

Shares of HelloFresh, which supplies meal kits for home cooking, have upside of over 94%, according to UBS, whose view was cited by CNBC. The company’s market capitalization on the Frankfurt Stock Exchange stood at EUR823.8 million ($979.16 million at the current exchange rate) on Monday, January 26, with the shares trading at EUR5.60 per share ($6.70).

UBS says HelloFresh is navigating a “challenging transition period”, but sees growth approaching as the company sharpens its focus on cost control. In its most recent quarterly report published in October, HelloFresh posted a 9.3% year-over-year decline in revenue to EUR1.58 billion ($1.88 billion), while noting that momentum improved versus the previous quarter. The company is scheduled to report its next set of financial results on March 18.

Trustpilot shares, which trade in London, have upside of more than 75%, UBS estimates. The company’s market capitalization stands at GBP810.6 million ($1.1 billion), and the shares closed at GBX205.2 per share ($2.81) on Monday.

Trustpilot operates a SaaS model under which basic functionality is offered free of charge, while businesses pay for advanced services such as analytics.

UBS, as reported by CNBC, sees upside driven by "mid-to-high teens top-line growth, a scalable SaaS model, potential to double margins over time, and strong cash generation and a clear willingness to return excess funds to shareholders." The company has already released preliminary figures for 2025, reporting 24% revenue growth to $261 million. Full financial results are due on March 17.

Shares of easyJet have upside of 66%, UBS says. The airline’s market capitalization in London is GBP3.54 billion ($4.85 billion). UBS expects growth in both passenger traffic and package holidays, which should support higher earnings. At the same time, analysts caution that the UK macroeconomic backdrop and an intensive capex program may weigh on investor sentiment. In fiscal 2025, which ended in September, easyJet reported 9% year-over-year revenue growth to GBP10.1 billion ($13.8 billion). The company is scheduled to report its next results on Friday, January 29.

RELX shares may rise around 56.5%, UBS estimates. The company is listed in Amsterdam, London, and New York, with a market capitalizations of EUR59.7 billion ($64.8 billion), GBP51.7 billion ($65.6 billion), and $70.9 billion, respectively.

UBS describes RELX as one of the “few stocks in Europe that we think offers structural growth, a low asset beta, high liquidity, a healthy balance sheet and short-term earnings upside potential.” The bank expects generative AI to accelerate the company’s organic growth.

RELX said underlying revenue grew 7% in the first 10 months of 2025, without disclosing absolute figures. In the first half of 2025, revenue totaled GBP4.7 billion ($6.44 billion). The company is scheduled to publish its next results on February 12.

Alcon shares have upside of 50.36%, UBS says. The company’s market capitalization stands at CHF30.85 billion in Switzerland and $39.8 billion in New York.

UBS expects Alcon to deliver the fastest organic growth in its sector in 2026, at 7%, supported by a diversified product portfolio and a multiyear cycle of product replacements and upgrades. In the third quarter of 2025, Alcon reported 6% year-over-year net sales growth to $2.6 billion. The company is expected to release its fourth-quarter results on February 25.