Feb. 21 (Bloomberg) -- Credit Suisse Group AG strategists upgraded their stance on European stocks within a global portfolio to “benchmark” from “underweight,” saying a “dovish” central bank and an economy that may have troughed will underpin equities.
“For the first time in almost two years, we become less negative on Continental Europe,” a team of stragegists led by Andrew Garthwaite in London wrote in a report. “Europe has also started, for the first time in a year, to move up our rankings of relative economic momentum.”
The strategists increased their 2012-end target for the Euro Stoxx 50 Index to 2,650 from 2,430 previously and from a close last week of 2,520, the report said. They fell short of recommending an “overweight” position on the region, saying valuations are “mixed” and concern lingers about growth, current-account balances and governments’ solvency.
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