European Equities Could Return 19% In 2015 Amid Low Valuations: Barclays

Barclays is bullish on European equities. A recent report from the firm argues cyclically oriented stocks are ready to run, and suggests 400 as a price target for Pan-European STOXX600 for 2015.

Ian Scott and team at Barclays in their European Equity Strategy report dated December 8, 2014 titled: “2015 Outlook: Reaching the rotation” anticipate continental European earnings would grow by 15% in 2015.

2014- A year of disappointment for European equities

The Barclays analysts note that so far this year, European equities have delivered a 7.5% total return in local currencies, marking 2014 as a disappointing year. They point out that the market has failed to live up to their bullish expectations, and once again has lagged the U.S.

However, they...