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European Equities Have 9%-12% Upside Potential in 2014: BofAML 2013-11-25 09:15:19.783 GMT
By Nadine Skoczylas Nov. 25 (Bloomberg) -- BofAML staying “structurally bullish” on European equities, says ECB action on deflation key to positive equity view in Europe, John Bilton writes in strategy note today. * Reflation will be main theme for 2014, meaning scope for EPS growth, rising stocks: BofAML * Overweight sectors have three themes: cash return and div. growth for telcos, energy, aerospace and pharma; macro stabilization for banks; operating leverage for food retail * Underweight chemicals, staples, tech and PHH * “Hard cyclicals” may struggle to perform * BofAML sets yr-end 2014 forecast for Stoxx 600 of 360, Euro Stoxx 50 target of 3,400 * NOTE: BofAML had yr-end 2013 target of 315 for Stoxx 600 as of Jan.; Index currently at 324.34, up 16% from 2012 close of 279.68 * NOTE: JPMorgan wrote Nov. 18 European equities are on track for a rebound in 2014; Goldman wrote Nov. 20 European equities may return ~15%
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To contact the reporter on this story: Nadine Skoczylas in Jerusalem at +972-2-640-1103 or nelsibai@bloomberg.net
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