Wedbush's Dan Ives named the stocks of four European tech companies. Are they worth buying?

Wedbush Securities global head of technology research Dan Ives recommended four European stocks he is bullish on. The analyst, who can be described as one of the most prominent technology optimists on Wall Street, told CNBC that the sector in Europe is experiencing a "moment of validation." Despite "growing frustration" among many investors about the region's ability to nurture tech players, there are a few companies worth watching, Ives said. Here's who he singled out.

SAP is a German software giant. The company's stock has fallen nearly 13% this year, but analysts see significant upside potential. Of the 28 analysts who track SAP's American depositary receipts, 22 recommend buying them, and only three recommend selling them, according to MarketWatch. The average target price is $283, suggesting a 16% appreciation from the last closing level (Dec. 12). The consensus target for the company's shares, traded on the Francourt Exchange, is 35% above current quotes, CNBC points out. Bank of America has listed SAP as one of its top 25 stocks for 2026 and expects improved commercial momentum and operating efficiency growth, the channel reports.

ASML is a Dutch semiconductor equipment supplier. Ives called it a key AI player. The Amsterdam-based company's capitalization has jumped 36% since the start of 2025, and it is up 56% on the Nasdaq exchange at once. A Bank of America analyst in early December named the company as his top pick in the chip sector for 2026, as well as a key favorite. After this year's rally, Wall Street expects ASML's stock price to rise another 9%, the average target compiled by MarketWatch shows. At the same time, the majority of analysts - 28 out of 39 - advise the company's securities to buy. "Bearish" ratings it has only two.

Klarna is a Swedish fintech company that offers buy now pay later services to customers. Since its IPO on the New York Stock Exchange in September, Klarna's shares have fallen 19%, according to CNBC. However, in its first quarterly report since listing, the company reported revenue growth that beat analysts' expectations - mainly due to strong results in the U.S.. Wall Street gives Klarna's stock a significant upside of 45%, according to the consensus target price. They are recommended to buy by 14 out of 19 analysts. There are no sell recommendations.

Spotify is a Swedish music streaming service. Its shares on the New York Stock Exchange rose by almost 34% in 2025. In early November, the company published strong results for the third quarter with revenue growth of 12% year-on-year, but its forecast did not meet market estimates, and quotations fell. Over the last month they are in minus by more than 6.5%. Analysts, however, do not give up their recommendations to buy these securities - Spotify now has 33 bullish ratings, while a month ago there were 32, MarketWatch shows . Eight analysts advise holding Spotify shares in their portfolios, and two recommend selling. The average target price is $658, implying a potential upside of 10% from the last close.

This article was AI-translated and verified by a human editor