Goldman lifts European stocks outlook despite Middle East conflict

Goldman Sachs has raised its 12-month target for the STOXX 600 index to 660, citing resilient corporate earnings growth and continued support from artificial intelligence-related investments despite the ongoing conflict in the Middle East. The pan-European benchmark index has remained close to record highs and gained 2.5% in May. However, escalating tensions in the Middle East have weighed on investor sentiment and limited further gains. The new 12-month target implies an upside of approximately 5.4% from the index's last closing level of 626. Higher short-term targets reflect confidence According to a note dated Friday, Goldman Sachs also increased its three-month and six-month targets for the STOXX 600 to 640 and 645, respectively. There was no immediate clarification regarding the brokerage's...