Deutsche Bank has named seven London-listed companies in the business services sector as its “top picks for 2025,” highlighting stocks with strong growth potential and defensive characteristics in an uncertain market environment. The investment bank highlighted Diploma , Experian , JTC , PageGroup , Renew Holdings , Rentokil , and XPS Pensions Group as companies positioned for sustained growth. All but the last stock on the list are also traded in the U.S. Among the picks, recruitment firm PageGroup stands out for having the highest potential upside at more than 50%, with Deutsche Bank giving it a price target of 5,500 pence. U.K. shares are generally priced in pence, with 100 pence equal to one British pound ($1.28). Deutsche Bank acknowledged that PageGroup is a cyclical stock, meaning it is likely to rebound when economic activity takes off. The investment bank said in a note on Dec. 9 that the company has “a presence in the permanent recruitment market” with “potential for strong positive earnings momentum when recruitment markets improve.” Deutsche Bank also described Diploma, a key supply chain and distribution company, as a “top compounder” that’s “well placed for 2025.” DPLM-GB 1Y line “We are confident that Diploma can sustain consistent c.6% organic growth with strong 21% operating margins in FY25, supported by the quality of its portfolio of decentralised businesses that increasingly serve structurally growing markets,” the analysts said. The investment bank estimates that since 75% of its production is sourced within the U.S., it is likely to be shielded from the adverse impact of any U.S. tariffs imposed by President-elect Donald Trump.
