STRATEGY 2014
NOMURA STRATEGY : - We think that European equity markets will rise by 14% in 2014 (17% total return), with the driving force likely to switch to earnings growth rather than multiple expansion"
ML STRATEGY : In our base case European equity indices have 9-12% upside potential in 2014. We also believe that ECB action on deflation is key to a positive equity view.
BARCLAYS STRATEGY : We forecast a total return of 27% for the Pan-European market in 2014, which would take the market back to the highs achieved in 2000 and 2007. Earnings growth should accelerate to 12% as modest, but above- consensus, GDP growth returns.
CITI STRATEGY : Citi strategists’ market targets suggest a further 14% gain to end-2014 for Europe. Another rerating should drive half this gain, and a resumption of global EPS growth the other half.
GS STRATEGY : After three years of virtual stagnation we expect European profits to grow 14% in 2014 driven by an improvement in global growth and some rise in margins.