Analysts expect Stoxx Europe 600 to reach 640 by end-2026
A fresh peace agreement between the US and Iran has brightened the mood in European markets.
Analysts now expect the Stoxx Europe 600 Index to climb back to its all-time high of 640 points by the end of 2026, according to a Bloomberg survey.
While some sectors are still catching up from earlier losses, there's growing optimism about a broader market recovery.
Barclays raises Stoxx target to 670
Barclays is feeling upbeat, raising its target to 670 points thanks to strong prospects in AI, banking, and luxury brands.
Goldman Sachs is also eyeing tech, renewables, defense, and aerospace as promising areas but warns that autos and chemicals could face pressure.
Societe Generale is a bit more reserved, expecting a short-term dip before gains pick up again by 2027.
Plus, lower oil prices after the deal are helping ease inflation worries and making central banks less likely to hike rates soon, a good sign for investors watching Europe's next moves.