Bloomberg: Goldman Sachs Group Inc. and JPMorgan Chase & Co. strategists are among the most optimistic about European stocks on the back of a robust corporate earnings outlook, a Bloomberg survey shows.

Goldman strategists have raised their three-month target for the Stoxx Europe 600 index to 670 points, implying gains of about 3% from Wednesday’s close. Panmure Liberum is the most bullish in the poll, with a year-end forecast of 700, while JPMorgan sees the index climbing to about 680.

On average, 15 strategists expect the benchmark to end the year around 651 points, representing a full-year rally of about 10%, according to the survey. That would mark the fourth straight year of gains in Europe’s longest winning streak since 2015.

“Europe has done much better than almost everybody would have expected at the outset of this year,” said Sharon Bell, senior European equity strategist at Goldman Sachs. “There’s been so much attention on a handful of companies in the US and Asia that I just don’t feel Europe has had its proper due.”

Market forecasters have consistently underestimated the strength of the rally. Back in December, the cohort had expected the Stoxx 600 to rise about 7% on average by end-2026, with even the most bullish target seeing the gauge at 650 points — a level it has already hit.

One contrarian forecaster is Bank of America’s Sebastian Raedler, who expects a potential increase in equity risk premiums on the back of “unresolved issues” around energy supply and US economic uncertainty. The strategist cut his already-bearish target further to 610 points, implying a drop of 6% from current levels.

For some others, though, the feed-through from AI spending as well as corporate earnings is reason enough to remain optimistic. Analysts on average expect Stoxx 600 profits to surge 15% this year and 9% in 2027, according to data compiled by Bloomberg Intelligence.