Goldman Sachs has advised investors to consider a specific strategy when trading in European markets right now, as “equities are likely to remain volatile in the near term.” It comes after the recent market rally and is expected to hold until “the pace of inflation turns more negative,” analysts at the investment bank wrote in a May 23 research note. Despite recording declines in the past few days, the pan-European Stoxx 600 is still up about 10.7% so far this year and is up about 18.6% in the past year. Going forward, those looking for opportunities in the region and “looking for a somewhat defensive position” might consider Goldman’s list of buy-rated stocks “that offer high relative risk-adjusted upside.” Here are two such stock ideas, which are also on the Wall Street bank’s conviction list. Air Liquide Goldman analyst Georgina Fraser took a bullish stance on French chemicals company Air Liquide and sees it as “best positioned from a supply-side perspective.” She said its competitiveness is largely due to “its strong market share, highly consolidated markets as well as high barriers to entry.” “These suggest that disruption to Air Liquide’s markets is unlikely and a key driver is the company’s ability to sign long-term take-or-pay contracts with customers, providing strong growth visibility,” Fraser said. Air Liquide shares are traded on the Euronext Paris exchange under the ticker AI-FR. It is also traded on U.S. over-the-counter markets as AIQUF. Its Paris-listed stock is up about 13.2% in the past 12 months. Goldman gives the stock a 12-month price target of 223 euros ($242.10), with about 23.6% upside. Bureau Veritas Another stock on Goldman’s list is French company Bureau Veritas, known for its laboratory testing, inspection and certification services. The company’s orientation toward secular themes related to the energy transition, energy security and sustainability is expected to “accelerate” its growth [than] “The advantage BVI has over its competitors is to move quickly,” said analyst Suhasini Varanasi. BVI shares are traded on the Euronext Paris exchange under the BVI – FR ticker. It is also traded in the First Trust International Developed Capital Strength ETF (2% weight) and the FlexShares International Quality Dividend Defensive Index ETF (0.8%). Over the past 12 months, BVI shares have gained about 12.6%. Goldman has a 12-month price target of 37 euros, putting the stock up about 20%. — CNBC’s Michael Bloom contributed to this report.