Global markets may be feeling the pinch from volatility and macroeconomic uncertainties, but Barclays believes several large-cap stocks in Europe make good plays right now. In an Aug. 9 research note titled “large, liquid and liked,” the investment bank’s analysts wrote that “not all recession indicators are flashing red.” “Summer markets are notoriously tricky to navigate, and the latest bout of volatility may have a knock-on effect for days/weeks to come, as degrossing may not be over. Price action may thus stay erratic, while U.S. elections will likely keep markets on their toes into the fall,” the analysts said. Degrossing occurs when financial institutions such as hedge funds close both their long and short positions. Barclays’ position comes as Europe’s Stoxx 600 has been down month-to-date, but has been climbing since the start of the year. The benchmark is up by 8.1% year-to-date. Sectors Barclays is overweight on include financials, utilities, real estate and cyclicals – with a preference for tech, retail, aerospace/defense and chemicals. Here are three under-the-radar stocks that Barclays is betting on: DSV Barclays is bullish on Danish transport and logistics company DSV as it said the firm looks set-up for a strong second half of 2024. Analyst Marco Limite sees “positive tailwinds to profitability across [DSV’s] divisions,” and expects cost savings to add around 180 million Danish Krone ($26.4 million) to profitability. “We think DSV’s organic strategy of gross profit expansion and above-market volume growth is still not well appreciated,” he said, adding that around 40% of DSV’s gross profit comes from its top 200 customers. Shares in DSV are listed on Nasdaq Copenhagen and trade as an American Depository Receipt (ADR) in the U.S. Year-to-date, its shares are up around 6.8%. Barclays has a target price of 1,510 Danish Krone on the stock, giving it around 20% potential upside. NatWest Group Barclays describes British bank NatWest as one of its “preferred names” among European banks. This, is thanks to its “sector-leading EPS [earnings per share] momentum and ongoing earnings upside potential driven by a best-in-class structural hedge tailwind,” analysts Aman Rakkar and Grace Dargan said. These factors, they added, more than offset falling interest rates and comes alongside an expected structural re-rating driven by an impending U.K. government exit, unwinding U.K. political risk and improving U.K. macro prospects. Shares in NatWest are listed on the London Stock Exchange and trade as an ADR in the U.S. Year-to-date, shares are up around 58%. Barclays has a target price of 460 pence ($5.9) on the stock, giving it around 36% upside potential. Renault Group Also on Barclays list is French automobile manufacturer Renault , even as its “shares have declined -16% relative to the SXAP performance of -10%,” at the time of publication of the note. Analysts Henning Cosman and Arya Ghassemieh continue to see “strong company-specific factors and near-term earnings resilience (absolute and vis-à-vis consensus) as key positives for [Renault’s] equity story.” “We have consistently liked the well-regarded management team, its strong track record of recent execution, and its substantially improved product portfolio, which has already started to materialize in robust volume-price-mix and should allow for strong mix to continue in 2024E/25E,” they added. Renault’s shares trade on the Euronext Paris Exchange and in the U.S. as an ADR . The company’s shares are up by over 12% year-to-date. Barclays has a target price of 60 euros ($65.8) on the stock, giving it nearly 50% upside potential. — CNBC’s Michael Bloom contributed to this report.