They raise the bar and expect more to come. That’s what Merrill Lynch’s strategists just did. Lire la suite
Global and regional macro backdrop is improving, investor sentiment is getting more bullish, EPS have turned the corner and are now on a more positive trend… No surprise European equities finished 2016 in a pretty better shape than they started it. Is the rally going to continue in 2017 ? Well, the mood is there and some brokers have decided to add some fuel to it.
This morning, Deutsche Bank and Merrill Lynch raised their SXXP y/e target to respectively 375 (from 345) and 390 (7% upside). Drivers for upside: accelerating growth, higher earnings revisions and EPS growth (11% for 2017e vs 7-8% previously at Merrill), forward P/E of 15x (stable from current level).
The summary of the report follows, but big picture: moderate earnings growth and European equity performance expected in 2015 (+7-8%)… For once, consensus is no longer in a double-digit mood as was late 2013…
Hope Credit Suisse’s analysts are right about this one.