Major investment banks are presenting varied outlooks for European equities in 2025, with predictions ranging from modest gains to significant upside potential amid concerns about global growth and trade tensions. .STOXX YTD line Goldman Sachs Goldman Sachs lowered its expectations for European stocks, with strategist Sharon Bell forecasting a 12-month price target of 530 for the Stoxx 600 , implying a price return of 3% from current levels.
The investment bank maintains a constructive view on rate-sensitive sectors, particularly favoring real estate, construction and consumer staples, while also highlighting retail sectors with strong European exposure as potential outperformers. JPMorgan JPMorgan strategist Mislav Matejka maintained his strong preference for U.S. equities over European stocks, despite their already exceptional relative performance. The S & P 500 is up more than 25% this year, while the Stoxx 600 is up just 7.