U.S. bank Citi refreshed its list of “highest conviction ideas” for Europe and recommended a specific trading strategy that investors can adopt right now. The ideas — or stocks — are captured in the investment bank’s focus list and include names that their analysts have the “strongest buy and sell ideas [on] for the next 12 months.” “The focus is on bottom-up ideas,” Citi’s analysts wrote in an Apr. 29 research note. Bottom-up usually refers to a strategy where investors consider microeconomic factors, like financial statements and company revenues and earnings. The list also “highlights liquid names in which investors can build positions,” the Citi analysts added. Citi’s focus list delivered returns of 3.4% over the last 12 months and 5.4% in the past three months. European equities finished a rough month on Tuesday, weighed down by geopolitical uncertainties and concerns of higher-for-longer interest rates. Europe’s Stoxx 600 index is up by 5.3% year-to-date but logged a 1.5% drop for April — its first down month since October. Citi’s analysts are expecting 6% potential upside to the Stoxx 600 to year-end on the back of “relatively solid full-year EPS [earnings per share] growth and modest re-rating.” EPS is an important metric traders use to gauge the value of a stock or index. Here are two of the latest buy-rated additions in Citi’s focus list with over 30% upside potential in the next 12 months: Leonardo Citi is bullish on Leonardo and its target price on the stock is 28.60 euros ($30.46), implying just over 32% upside potential. Citi said the company had given detailed targets out to 2028 which were “broadly in line” with its own estimates. Leonardo recently won a competition to provide services to the U.K. Ministry of Defence. The Italian defense and security company earned a £9 million ($11.22 million) contract to offer data science, engineering and visualization services to the British government. Flutter Entertainment Irish online gaming operator Flutter Entertainment is a top player in markets like the U.S., U.K. and Ireland, Australia and Italy, Citi noted. “We see its pole position in the U.S. as its key investment attraction. We expect strong U.S. Revenue growth medium-term,” the bank’s analysts noted. They also expect growth outside the U.S. on the back of product innovation and scale benefits. Flutter Entertainment has a dual listing on the London Stock Exchange and New York Stock Exchange. Citi has a target price of £200 on the LSE-listed stock, giving it 34% potential upside. — CNBC’s Michael Bloom contributed to this report.