UBS and Deutsche Bank have raised their Stoxx 600 price targets as European equities extend gains, according to a Bloomberg survey of strategists.

Accelerating earnings growth and confidence the rally can withstand the latest geopolitical jitters means strategists are increasingly optimistic about European stocks, a Bloomberg survey shows. The positive outlook reflects improving corporate profitability and resilient macroeconomic data across the region.

Both banks cited stronger-than-expected quarterly results and favorable valuation metrics compared to U.S. peers as key drivers. The Stoxx 600 has outperformed major global indices year-to-date, supported by sector rotation into industrials and financials.

Strategists note that while risks remain from monetary policy uncertainty and geopolitical tensions, the fundamental backdrop warrants higher targets. The consensus now sees further upside potential through year-end.