Citi stays constructive on European equities to mid-2027 despite macro headwinds

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  • Citi expects valuations to remain near the current c14x 12m forward PE, with double-digit EPS growth in 2026/27E, and stays balanced across Tech, Banks, Basic Resources, Health Care and Personal Goods.
  • The bank says solid EPS growth, light positioning, fiscal-policy tailwinds and the broader case for global equities should support Europe, despite energy-price pressures, rate hikes and lower AI exposure.
  • Citi remains Neutral on Europe globally, but keeps its end-2026 Stoxx 600 target at 640, and introduces a mid-2027 target of 700.

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