HSBC identified nine "unloved stocks" listed on the London Stock Exchange that it says could be poised to surge due to several factors.
The investment bank said U.K. markets have started to outperform other global indexes for the first time this year — since the release of the U.K.'s June inflation data on July 18.
While the bank's strategists retain their underweight view on the U.K. market overall, they highlighted that London-listed stocks are "unambiguously cheap" on a valuation basis.
The bank said the above stocks are FTSE 350 constituents with bottom-quartile consensus ratings indicating a sell or underweight rating.
"By definition these screens are not relevant to everyone and should be viewed as a basis for further investigation," the HSBC strategists added in a note to clients on Aug. 15.
Persons:
Edward Stanford, Hargreaves, — CNBC's Michael Bloom
Organizations:
HSBC, London Stock Exchange, of England, FTSE, SPX, HSBC FX, Pennon Group, Unilever