Morgan Stanley Sets MSCI Europe Target At 1350

Morgan Stanley (NYSE:MS) is bullish on Europe, setting its 2014 target for the MSCI Europe Index at 1350, up seven percent from its current level of 1264. Morgan Stanley analyst Matthew Garman expects European EPS growth in the 9–10 percent range, and an overall ‘return to normalcy’ as the recovery continues and developing markets regain the ground they’ve lost since 2008. If central banks decide to extend monetary accommodation longer than most people expect, the index could go up by nearly a third. Earnings per share growth The best scenario, what Garman calls the ‘Goldilocks Redux’, is that Europe manages…