JPMorgan raised its target for the Euro Stoxx 600 to 680, even more aggressive than Barclays. This move bets on accelerated earnings and market breadth expansion. Will European stocks turn around in the second half of the year?

Against the backdrop of the Iran conflict impacting European stock markets, JPMorgan analyst Matejka raised the year-end target for the Euro Stoxx 600 from 630 to 680 points, implying roughly 7% upside, surpassing Barclays' and HSBC's targets of 670 points. The team stated that earnings growth in the eurozone is accelerating, forecasting an EPS increase of 18% in 2026 and 12% in 2027. If market rotation expands in the second half of the year, European stocks could once again become an attractive investment.