AI Stock Swings Show Split Among Europe’s Analysts and Investors

Equity analysts still attach attractive valuations to many European stocks at the heart of the selloff over artificial intelligence disruption fears, revealing a sharp contrast with investors over how to assess companies in the frontlines of the AI reckoning.

UBS Group AG’s EU AI Risk basket — a collection of 34 recruitment firms, media groups, and business services providers facing potential AI upheaval — has plunged 38% in a year. Yet target prices set by sell-side analysts imply that the cohort trades at an average 51% discount, suggesting they see strong recovery potential in the very names the market is discarding.