European equities are getting a split verdict in this week's published research: longer-term calls lean constructive, while tactical reads turned cautious as AI jitters resurfaced.
On the bullish side, researchers point to structural tailwinds — German fiscal stimulus, M&A activity, and roughly €1.8 trillion of "strategic autonomy" investment earmarked through 2035 across defence, energy, steel, space and tech. One camp of analysts has a 12-month Euro Stoxx 50 target around 6,620 (about 5% upside) and a FTSE 100 target near 10,750, while still staying underweight UK equities on soft earnings growth and fiscal uncertainty.
Near term, the published consensus is more wary: AI spending worries flared after Meta flagged heavier growth costs, Asian markets weakened, and oil ticked up. Tactical commentary flagged the DAX's 25,500 level as key support. UK banks have drifted lower ahead of an expected industry tax hike in next week's budget.
Single-name notes from recent research: SAP seen opening higher on a Q3 beat and strong cloud signings; Qiagen flagged with upside toward the €10.8bn takeover offer management backs. A contrarian trade idea making the rounds: long US financials, short European ones, on the view that EU banks have run too far and French political risk could spoil the party.