Goldman Sachs lifts 12-month target for European stocks on strong earnings

Published Fri, Aug 14, 2026 · 10:23 PM

[NEW YORK] Goldman Sachs on Friday (Aug 14) raised its 12-month target for Europe’s STOXX 600 index, pointing to strong corporate earnings and resilient economies.

The Wall Street brokerage expects the pan-continental index to reach 695 points, up from its previous forecast of 660, implying about 5.5 per cent upside from current levels.

Europe is on track for one of its strongest earnings seasons in years as soaring energy and materials profits offset signs of softer demand elsewhere.

“Europe’s recent relative performance has been stronger than its reputation suggests,” Goldman strategists said in a note. They said European equities remain cheaper than US peers, while offering relatively high shareholder returns through dividends and share buybacks.

Companies in the STOXX 600 are now expected to report aggregate earnings growth of 23.4 per cent, according to LSEG I/B/E/S data, based on reported results from 268 companies and estimates for those yet to publish results. Despite energy supply concerns, the index has advanced 11.3 per cent year-to-date, versus a 13.9 per cent increase in the S&P 500.

Still, Goldman Sachs flagged that a prolonged energy shock remains a major risk for Europe, where dependence on imported energy has kept investor risk appetite in check. The brokerage also raised its 12-month target for Britain’s FTSE 100 to 11,400, an upside of about 5.8 per cent from current levels. REUTERS