UBS strategists raised their year-end target for the Stoxx Europe 600 Index to 690 from 630, implying about 8% upside from current levels and making it the highest forecast among strategists tracked by Bloomberg. They also set a 2027 target of 760, suggesting a potential 19% gain over the next 18 months. The upgrade reflects stronger-than-expected earnings resilience, with strategists Gerry Fowler and Sutanya Chedda pointing to AI-related earnings upgrades, continued positive revisions for banks, and reduced pressure from defensive sectors as the euro weakens. Analysts currently expect around 12% profit growth in the second-quarter reporting period, and UBS believes the upcoming earnings season could show European companies outperforming the broader economic narrative.
UBS Group AGUBS strategists raised Stoxx 600 target, implying positive outlook for European equities and UBS's own business
JPMorgan Chase & Co