The outlook for equity markets looks “decent” going into 2025, according to Barclays, as central banks cut interest rates and the global economy remains resilient. “Given limited valuation uplift for frothy parts of the market, global equities may struggle to deliver outsized risk-adjusted returns again in 2025. But they still screen favorably vs. bonds, cash and credit,” the investment bank’s analysts wrote in a Nov. 18 research note. The bank named “overweight-rated stocks in which our analysts have high conviction in 2025 and see value in owning on an individual basis.” Here are three of Barclays’ top picks, which it gives over 35% upside potential: Shell Barclays is bullish on Shell and has a target price of £36 ($45.60) on the stock, giving it around 40% upside potential. The investment bank describes the oil and gas giant as a “compelling stock to consider for 2025 due to its strong operational momentum, robust cash flow generation, and attractive shareholder returns.” “Shell offers both value and momentum into 2025,” the analysts wrote, adding that its shares look undervalued. Going forward, they expect the company’s free cash flows to come in at $23 billion, “leaving plenty of room to pay dividends and buyback.” Shares in Shell are listed on the London Stock Exchange and trade as an American Depositary Receipt (ADR) in the U.S. under the ticker SHEL . AstraZeneca In the pharmaceuticals space, Barclays is betting on AstraZeneca . “We think now is a compelling entry point in AstraZeneca, as 2025 looks set to be a year of ground- breaking catalysts,” the analysts explained. These catalysts include an $80-billion revenue target for 2030 which the company announced in May — around $10 billion higher than expected at the time. Shares in AstraZeneca are listed on the London and Stockholm Stock Exchanges and trade as an ADR in the U.S. under the ticker AZN . They are currently trading around a three-times discount to their five-year average, Barclays’ analysts said. “We see this as a very attractive valuation given that we expect Core EPS to grow.” The investment bank has a target price of £14 on AstraZeneca, implying around 41.6% upside potential. BE Semiconductor Industries Also on Barclays’ list is semiconductor equipment supplier BE Semiconductor Industries , which it says will benefit from an “industry-wide expansion into advanced packaging.” Besi is a market leader in advanced packaging, which can improve the efficiency and performance of chips. The analysts expect BeSi to have “strong growth in 2025 and a bright medium-term growth outlook” thanks to its ” dominant market position in hybrid bonding and potential to expand into thermal compression bonding.” The analysts noted that the Dutch stock is trading at a premium compared to its peers, but said this valuation was justified. Shares in BE Semiconductor Industries are listed on the Euronext Amsterdam and trade as an ADR in the U.S. under the ticker BESIY . Barclays has a target price of 160 euros ($169.50) on the Amsterdam-listed stock, giving it 44% potential upside. — CNBC’s Michael Bloom contributed to this report.