These are Jefferies best stock ideas heading into the second half

Jefferies highlighted its best global stock picks as the second half of the year approaches, representing the firm's highest-conviction stocks with a buy rating. The firm's best ideas list includes its top global equity ideas that align with themes of secular innovation and disruption, structural change, and product cycles and pricing power. The stocks in the list span regions across the United States and Latin America, Europe, Middle East and Africa (EMEA) and the Asia–Pacific (APAC). Here are some of the top picks: Named a top pick in the secular innovation and disruption category, ASML is up 35.8% this year, and analyst Janardan Menon sees more outperformance from the stock over the next 12 months. With its price target at 1,260 euros, he sees about 22.6% upside from Thursday's close. Menon cited a broad sector re-rating around the mid-2025 and his forecasted earnings growth of 68% between this year and next as catalysts. He anticipates that an acceleration in the semiconductor cycle aided by recovering demand and increasing memory prices will conservatively grow the company's revenues by 37% next year. Bank of America is similarly confident on ASML's revenue outlook for 2025, saying it's "irreplicable" in the AI infrastructure buildout. The firm named it a top pick in European Union semicaps and lifted its revenue estimates for 2025 and 2026. BofA also raised its price target by $193, or 146 euros, and maintained its buy rating on the stock. ConocoPhillips also made the cut, being considered a top idea in the structural change category. Shares of one of the largest U.S. oil companies are down 1.8% in 2024, but analyst Lloyd Byrne sees the stock changing course, with the company's acquisition of Marathon Oil adding more upside to earnings and free cash flow. His price target of $155 implies 36% upside ahead. The analyst cited cost savings on large-scale projects like Willow , post-acquisition synergies, more announcements about coring up Permian acreage and a base dividend increase as catalysts. Another key pick was Digital Realty , this time in the product cycles and pricing power category. Shares of the data center real estate investment trust are up 10.5% year to date, and analyst Jonathan Petersen sees the stock moving 24% higher. Petersen anticipates stock upside due to a stronger growth rate of data center chip sales. Meanwhile, the stock is trading at an attractive entry point for investors. BMO Capital Markets is also bullish on the stock, seeing room for more multiple expansion and growth in funds from operations over the next couple years. On Wednesday, the firm upgraded the stock to outperform from market perform and raised its price target by $26 to $170. Other stocks in the list include Microsoft in the secular innovation and disruption category, International Paper in the structural change category and Nintendo in the product cycles and pricing power category.