Goldman Sachs has released its “conviction list” of top European stock picks for December – and London-listed shares of BT Group stand out. Wall Street bank analysts see upside potential of 130% for London-listed BT Group. They cited the telecom giant’s plans to monetize its fiber optic infrastructure as a significant opportunity to generate sustained free cash flow improvement. Goldman Sachs expects the BT share price to more than double to 290p in the next 12 months. British stocks are generally valued in pence, with 100 pence equal to one British pound (US$1.26). BT, the UK’s largest broadband provider, plans to expand and expand its fiber optic network to 25 million homes by the end of 2026. Analysts believe BT has historically built its network faster than competitors, but has the added advantage of having large capacity. This time BT can significantly reduce costs. Goldman believes these massive infrastructure investments are not yet factored into BT’s share price. BT.A-GB YTD line However, the investment bank is not alone in its optimistic assessment of the telecommunications operator. Wall Street rivals Morgan Stanley and JPMorgan also believe BT shares are mispriced because investors have undervalued the network arm Openreach. “As Openreach advances its fiber buildout and the competitive landscape improves, a significant re-rating opportunity could arise,” said Morgan Stanley analysts led by Terence Tsui. Their price target of 220p implies a further 71% rise in the share price next year from the current price of around 123p. JPMorgan also expects BT shares to rise to 290p in the next 12 months. Conviction List Other prominent stocks on Goldman’s Conviction List include Delivery Hero, Burberry, Bureau Veritas and Philips. The bank says these recommendations currently represent its “most sophisticated fundamental buying ideas” in European markets. Goldman cautions that its belief list should not be viewed as a portfolio because the stocks are not weighted. However, attempts are made to ensure some diversification across sectors and regions. The bank believes equity market volatility in 2023 has created opportunities for active stock picking as indices continue to remain range-bound. For example, the Europe Stoxx 600 index traded between 430 and 470 throughout the year, testing the highs and lows multiple times. Likewise, the S&P 500 remained between 3,800 and 4,570. —CNBC’s Michael Bloom contributed to this report.