Analysts: Limited Upside for European Stocks This Year

According to the average forecast of 17 analysts, the Euro Stoxx 600 Index is expected to reach 623 points by the end of 2026, representing an approximate 1% increase from Wednesday's closing price. The index has largely recovered from losses incurred due to the war in Iran, but strategists suggest this rebound appears unsustainable as the full impact of rising energy costs has yet to materialize. Deutsche Bank, DekaBank, UBS Group, and UniCredit have moderately lowered their respective index targets in the latest survey. HSBC emerged as the most bullish institution, with a forecast of 670 points, implying an 8% rise for the index. TFS Derivatives and Bank of America remain the most bearish strategists, predicting a potential decline of around 9% for the index. (Jin10)