UBS has raised its Stoxx 600 price targets, citing resilient earnings growth and a broadening of positive revisions beyond AI enablers to include defensives and banks. The report highlights a shift in sentiment toward 'less caution' as laggard sectors begin to stabilize.
Key Takeaways
- 1.UBS raised Stoxx 600 index targets to 690 for 2026 and 760 for 2027, driven by more resilient earnings and broadening positive revisions.
- 2.AI-related strength is no longer the sole driver; a broadening recovery is observed in luxury, staples, pharma, banks, and industrials.
- 3.The firm observes a 'North-South' economic divergence in Europe, with Southern Europe (Spain, Italy, Portugal) demonstrating stronger resilience than core Northern markets.
Table of Contents
- Index Target Upgrade
- Earnings Season Preview
- Derivative opportunities in earnings season
- From the Fly on the Wall
- Valuation Method and Risk Statement
- Required Disclosures
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Authors
Gerry FowlerSutanya Chedda
Securities
ASMLLVMH
Themes
AI InfrastructureDefensive Sector RotationEarnings Revision Momentum
Regions
EuropeNorth AmericaAsia PacificGermanyFranceSpain