European equities are drawing an unusually broad bullish call from published research this week, with several analyst camps pointing to continued outperformance versus other global regions.
The core argument researchers are making: the Eurozone's fiscal stance has flipped from a drag to a genuine tailwind — defense spending, Germany's fiscal expansion, and the EU recovery fund are all feeding through. On top of that, published notes highlight unusually broad earnings revisions and double-digit EPS growth expectations. One thread also frames Europe as a useful diversifier against AI-concentration risk elsewhere.
Two sector calls stand out in recent research. Euro area financials are flagged as an overweight, with analysts citing one more expected ECB rate hike before year-end as a direct boost to bank net interest income. Separately, a structural case is being made for European utilities as beneficiaries of a multi-year electrification and grid build-out — rising demand from EVs, data centres, and heatwaves is argued to support margins over the long run.
No single-name focus today; the story is sector-level.