UBS Strategists Turn More Bullish on European Equity
2015-06-04 06:28:53.613 GMT
By Blaise Robinson
(Bloomberg) -- UBS raises its Stoxx 600 end-2015 index
target to 440 from 380, according to strategy note.
* Forecasts 10% earnings growth in 2015, 10% in 2016
* Strong 1Q earnings season, analyst upgrades, improved macro
conditions will help fuel rally
* On derivatives, UBS drops recommendation for a put spread on
the Euro Stoxx 50 and instead suggest a 3700 Euro Stoxx 50
call with expiry in Dec 2016 to capture more upside for
European stocks
* Says call still good way to limit downside risk as Greek
talks continue
* Less positive on U.K. market, targets 7,200 FTSE 100 for
year-end
* NOTE: Earnings for Stoxx 600 companies expected to rise ~40%
in next 12 mths, according to Bloomberg data
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To contact the reporter on this story:
Blaise Robinson in Paris at +33-1-3365-5008 or
brobinson58@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
2015-06-04 06:28:53.613 GMT
By Blaise Robinson
(Bloomberg) -- UBS raises its Stoxx 600 end-2015 index
target to 440 from 380, according to strategy note.
* Forecasts 10% earnings growth in 2015, 10% in 2016
* Strong 1Q earnings season, analyst upgrades, improved macro
conditions will help fuel rally
* On derivatives, UBS drops recommendation for a put spread on
the Euro Stoxx 50 and instead suggest a 3700 Euro Stoxx 50
call with expiry in Dec 2016 to capture more upside for
European stocks
* Says call still good way to limit downside risk as Greek
talks continue
* Less positive on U.K. market, targets 7,200 FTSE 100 for
year-end
* NOTE: Earnings for Stoxx 600 companies expected to rise ~40%
in next 12 mths, according to Bloomberg data
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Blaise Robinson in Paris at +33-1-3365-5008 or
brobinson58@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net