European equities drew an unusually bullish chorus this week, even as growth signals wobbled.
Several research desks turned more constructive on the region: one house upgraded euro area equities to a core holding, framing it as a rotation away from crowded Asia ex-Japan exposure. Another flagged six straight weeks of outflows as one of the best entry setups in over a decade, arguing the bad news is priced. A long-horizon view pencilled in roughly 7% annual returns, tied to industrial renewal, AI buildout and strategic autonomy. UK equities were called deeply undervalued versus US peers, with takeover activity seen as a likely re-rating catalyst.
Single-stock conviction clustered around the AI power trade — ABB, Schneider Electric, Siemens Energy and Iberdrola were all flagged as structural winners from data center capex and grid modernization. European banks and insurers were described as still undervalued, with one manager citing 20–30% further upside for banks on stable margins and loan growth.
The contrarian note: one shop cut European growth forecasts, warning of contraction risk as services PMIs roll over.