Handelsbanken today makes a change among its sector favorites in the Basic Materials sector, with Stora Enso replacing UPM.

"We continue to have a positive view on forestry company UPM, but we now see more upside in Stora Enso. Stora Enso's stock has been weak this year and we see a large upside to our estimated net asset value of EUR 17 per share. A catalyst for the stock could be the upcoming sale of forest assets (expected in the first quarter of 2025), which is expected to reveal hidden value," the bank writes.

The stocks included in the sector favorites are Stora Enso, Lundin Mining, Sandvik, Alfa Laval, Autoliv, Husqvarna, Bakkafrost, Mowi, Sobi, Biogaia, Nordea, Danske Bank, Ericsson, Netcompany, MTG, Elisa, Catena and Diös.