JPMorgan y Goldman Sachs se colocan entre los más optimistas con la Bolsa europea

Two major banks, JPMorgan and Goldman Sachs, have upgraded their forecasts for the European stock market, placing them among the most optimistic financial institutions regarding the Old Continent's variable income. Both banks have raised their target for the Stoxx 600 index, which tracks Europe's leading companies by market capitalization, to 680 points by December.

This projection represents a record high and a potential 4% increase from current levels, and a 670-point rise, respectively. According to Mislav Matejka, JPMorgan's global and European equity strategy head, the shift towards security, resilience, and strategic autonomy in Europe is expected to positively impact the stock market, with a significant rise in prices for companies in defense, energy systems, electric networks, industrial capacity, digital infrastructure, and critical supply chains.

Goldman Sachs' European strategist, Sharon Bell, believes that the continent has received much more attention and recognition compared to what most people expected. The strong inflow of investments into Europe in recent years is expected to continue, as the European stocks are currently cheaper than their U.S. counterparts, despite the revaluations.

Both American banks share the view that sustained growth in corporate earnings, albeit at a lower percentage than Wall Street's stocks, coupled with a smaller technology and artificial intelligence sector, supports the Stoxx 600 outlook for the rest of the year and beyond 2027. Barclays anticipates a 16% growth in earnings per share for Europe this year, up from the previous 12%, as they expect a substantial improvement in accounts during the latter part of the year.

The significant increase in nominal growth remains a key driver for earnings in the European Union, as long as oil prices remain stable, favorable, and the currency effect is a modest positive factor, according to Emmanuel Cau, the European equity strategy director at British private bank Lombard Odier.