LONDON, Oct 12 (Reuters) - Credit Suisse equity strategistssaid on Wednesday they expected sterling, which has beenhit by concerns over Brexit, to fall further against the euro, and tipped buying UK stocks with earnings in Europe.
"The house view is GBPEUR 1.16 in 12 months' time. However,we are slightly more bearish and would now expect GBPEUR totrade down to 1.05 (previously 1.10), having turned bearish onthe pair a year ago," the Credit Suisse equity strategy teamsaid in a research note.
"Thus, continue to buy UK-listed Continental Europeanearnings," they added.
Among their favoured stocks in this regard were travel groupThomas Cook, telecoms group Vodafone, homeimprovement retailer Kingfisher and textile servicescompany Berendsen.
They also upgraded UK small caps to "benchmark" from"underweight". (Reporting by Sudip Kar-Gupta; Editing by Andrew Heavens)
Kingfisher (KGF)
Vodafone (VOD)
