Investing.com – According to the 2021 outlook released recently by the bank Barclays (LON :), European equities are expected to hit new highs in 2021, with a potential 13% rise for the. The bank has also identified two stocks, two that could rise by more than 50% (and another that should almost achieve this feat).
Analysts at the bank said a recovery in stock markets would be mainly driven by earnings per share growth, thanks to vaccines that will bring the Covid-19 pandemic under control and a return to normalcy leading to a surge in earnings per share. the shares. cyclic.
Separately, Barclays predicts global GDP growth of 5.4% next year, the strongest since 2010, which they say will allow European companies to increase their profits by about 45% from their previous year. actual level.
To justify these forecasts, the banknotes note:
“Central banks and governments still have ammunition to support the recovery, financial conditions are favorable and there is pent-up demand given the resilience of disposable income, high savings and the recovery of profits. Given the wide output differentials, we expect expansionary monetary and fiscal policies to remain firmly in place. The recovery in China is spreading, while in the US and Europe consumer spending and investment and services are expected to overtake manufacturing. in this context, bond yields are more likely to rise than fall, along with weaker value and cyclical factors ”.
The best buying options and the values to avoid according to Barlcays:
When it comes to stocks topping Barclays’ buy-back list, we can mention the oil giant BP PLC (LON :), for which the bank expects a possible 63.7% increase in the share, followed by the Dutch bank ABN AMRO Group NV (AS 🙂 whose share should rise 50.6%, and British telecommunications company BT Group PLC (LON :), which the bank says should see its stock increase 47.2%.
Conversely, Barclays predicts a sharp decline of -46.1% for Lufthansa (DE :), from -34.1% for the Dutch payments company Adyen NV (AS 🙂 and -30.5% for the UK online supermarket Ocado Group PLC (LON :).
Finally, it should be noted that Barclays rejected his positive view by acknowledging that the short-term outlook remains uncertain, as the use of vaccines and the long-term societal impact of the pandemic are still unknown, and that the recent upsurge in markets left less room for positive surprises.
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