JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Goldman Sachs strategists have indicated a modest upside for European stocks, despite strong performances in 2025. They have noted that the domestic and cyclical segments of the market remain inexpensive relative to their profitability.
The strategists, including Guillaume Jaisson, stated in a note that "After the rally, Europe trades on a forward P/E of 14.2x, a premium to historical averages, but still a larger-than-average discount to the US market."
They also highlighted the potential for earnings-per-share to grow beyond their estimate of 3-4% per year for the period of 2025-2027.
However, they also pointed out potential downside risks. These include declining US growth, possible legislative hurdles to fiscal spending, and rising bond yields in Europe.
Despite these risks, the strategists maintain a long position on defense and fiscal infrastructure.
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