Jefferies equity research shows buy ratings dominate European capital goods coverage, making up 61.19% of recommendations. The brokerage’s stance remains positive despite a more cautious view on short-cycle industrials, where it issued downgrades citing weak data and a lack of recovery signals in European manufacturing.

The analysts noted that volumes in some short-cycle areas remain 15% to 20% below 2018 levels, with purchasing managers’ indexes still indicating contraction. Jefferies’ top picks for 2026 include Siemens, Schneider Electric, and ABB, all rated buy with published price targets, reflecting a preference for large-cap electrification and industrial groups.

Hold ratings are concentrated in companies like Sandvik, SKF, and KONE, where valuation or mixed end-market exposure tempers the case. For investors, the skew toward buy calls signals confidence in long-cycle recovery, even as near-term industrial data remains soft. The key question is when manufacturing PMIs will break back into expansion territory.