UBS has raised its Stoxx 600 target to 690 points, implying about 8% upside by the end of 2026, as European earnings momentum strengthens. Strategist Gerry Fowler said the market may face more upside risk than downside risk, with negative catalysts harder to identify across major sectors and positive revisions more likely for AI enablers, banks, and industrials. Citigroup's earnings-revision gauge for Europe excluding the UK hit a five-year high, with 80% of sectors in net upgrade territory, while European earnings per share are projected to rise 14% in 2026 and 10% in 2027. More than 45% of companies reporting so far have exceeded estimates, and second-quarter earnings growth is tracking 11.6% year over year. Bank of America, Deutsche Bank, and Kepler Cheuvreux also raised their forecasts, though the average target among 18 strategists surveyed by Bloomberg is 647 points, representing less than 1% upside, and Societe Generale and TFS remain cautious with targets of 600 and 585 points respectively.
Bank of America Corp
Deutsche Bank Aktiengesellschaft
Societe Generale S.A.
UBS Group AG
ASML Holding N.V.
Citigroup Inc.