27 Feb 2015
European equities to rise by 20-25% total returns for the full year 2015 – GS
FXStreet (Barcelona) - Goldman Sachs remains optimistic on European equities due to impact of QE, moderating deflationary concerns and a strong European growth, as such predict a rise in total returns by 20-25% for 2015.
Key Quotes
“We remain positive on European equities and roll forward our targets. We expect a total return on SXXP of 10% over 12 months, with a slightly higher return, 12.5%, on SX5E.”
“Following the rise that we’ve seen, this would mean European equities rising by 20-25% total returns for the full year 2015.”
“Our continuing optimism is based on the ongoing impact of QE, moderating deflationary concerns, a decline in the ERP and stronger European growth.”
“We remain underweight Consumer Staples and increase our overweight in Consumer Cyclicals.”
“2016 should see robust EPS growth as commodity sectors are no longer a drag and as the European and global economies continue to improve. We forecast 12% earnings growth in aggregate for the SXXP. This would represent the first double-digit growth since 2010.”
“The weaker euro, lagged impact of falling oil prices on the consumer sectors, and some tailwind from banks’ earnings (as loan losses diminish and other charges fall) should all be supportive in our view.”
Key Quotes
“We remain positive on European equities and roll forward our targets. We expect a total return on SXXP of 10% over 12 months, with a slightly higher return, 12.5%, on SX5E.”
“Following the rise that we’ve seen, this would mean European equities rising by 20-25% total returns for the full year 2015.”
“Our continuing optimism is based on the ongoing impact of QE, moderating deflationary concerns, a decline in the ERP and stronger European growth.”
“We remain underweight Consumer Staples and increase our overweight in Consumer Cyclicals.”
“2016 should see robust EPS growth as commodity sectors are no longer a drag and as the European and global economies continue to improve. We forecast 12% earnings growth in aggregate for the SXXP. This would represent the first double-digit growth since 2010.”
“The weaker euro, lagged impact of falling oil prices on the consumer sectors, and some tailwind from banks’ earnings (as loan losses diminish and other charges fall) should all be supportive in our view.”