European equities are getting a broadly constructive medium-term read from published research, even as specific German names face clear headwinds.
The bullish case, as several recent research notes frame it, rests on fading Middle East risk, lower oil prices easing inflation pressure, and solid corporate earnings — roughly 12% forward EPS growth with positive revisions across more than half of the broad European index. AI-driven demand is also lifting European chipmakers. One tactical thread adds that investor positioning has turned notably negative, which researchers argue sets up short-term bounce potential — and if crude keeps falling, that camp expects European stocks to outperform US peers.
A separate strand of analysis highlights European transmission grid and infrastructure equities as a multi-year story, pointing to the €9.5 billion TenneT Germany deal as evidence that capital is shifting from new power generation toward grid upgrades.
On single names, recently-published views turn cautious: Siltronic faces pressure from a roughly €270 million dilutive capital raise, and Volkswagen is flagged as cyclically exposed after Chinese auto sales fell nearly 20% through the first five months of 2026, with management ruling out a China recovery this year.