European equities are drawing a strongly bullish tilt in this week's published research, with one dissenting voice pushing back that prices have run too far ahead of profits.
The bull case, as several research notes lay it out: European indices hit fresh highs at the end of June, leadership has broadened beyond tech, energy prices are easing (a real tailwind for an import-heavy region), business surveys are improving, and forward earnings for MSCI Europe are tracking around 11% growth. One camp of analysts also flags sector-specific drivers — policy support for Financials, the electrification build-out for Utilities, innovation in Healthcare, and earnings momentum in Industrials and Consumer Staples. Mid-caps are highlighted as a preferred way to play the investment cycle, and ASML gets a specific bullish call-out, with researchers noting its valuation premium to US peers has effectively disappeared.
The contrarian view argues European equities are "priced to perfection," with price gains materially outpacing earnings and downside risks now outweighing upside over the coming quarters.