European Snapshot: Rising analysts’ confidence

Research evidence excerpt

European Snapshot: Rising analysts’ confidence

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European Snapshot

Rising analysts’ confidence

Quantitative Strategy

All European revision ratios in net upgrades 06 July 2026

In June, all 1-month revision ratios moved into net upgrade territory for the first time in Quant Strategy

3 years, with EPS (1.02) joining sales (1.19) above 1. DPS (1.47), buybacks (2.14) and Europe

price targets (1.76) point to increasing confidence in shareholder returns and valuations,

while inventories (2.00) and capex (1.59) suggest stronger demand and investment

Paulina Strzelinska >>

expectations. Net debt (1.52) remains the only negative signal by interpretation, though Quant Strategist

its rise alongside improving capex and capital-return revisions suggests leverage is being MLI (UK) +44 20 7996 7059

used to support growth rather than reflecting balance-sheet stress. paulina.strzelinska@bofa.com

Germany, Technology and EM lead the upgrades

Germany saw the strongest improvement in revision breadth, with accelerating upgrades See pages 30-35 for definitions of

to sales, EPS, dividends and price targets alongside lower net debt expectations. In the terminology used in the report.

contrast, the UK lost momentum, with weaker sales and sharply lower price-target

revisions leaving both sales and EPS ratios below 1. Technology recorded one of the

strongest positive inflections, driven by improving sales and EPS revisions, while Latest European Snapshot notes:

Utilities saw weaker price targets, dividends and capex revisions. High Quality

European Snapshot: EM strength vsstrengthened across sales, price targets and capex, whereas Rising Price Momentum

US flows as Europe globalises furtherremained strong but moderated from previously elevated levels. EM-exposure continued