Jan 10 Reuters Barclays on Wednesday raised its 2024 target for Europe39;s benchmark STOXX 600 to 510 points from 485, as prospects of central banks cutting interest rates and a soft landing scenario plays out.

The new target represents a roughly 7 upside from current levels.

Last December, Citigroup said it sees the index at 510 by end2024, while Swiss lender UBS on Tuesday raised its target to 450 points, roughly 6 below current levels.

The bar for positive surprises has been raised, but fundamentals remain broadly supportive of a soft landing, Barclays strategists said in a note.

So long as disinflation is tracking, we believe the prospect of rate cuts down the road will continue to provide positive asymmetry to equities and prompt cash deployment, they added.

Barclays said it sees room for more pricetoearnings PE expansion in Europe, while still expecting midsingle digit profit growth, with the bulk of the gains likely in the second half of the year.

However, it noted that while the new target is reasonable provided central banks cut rates quickly enough for a soft landing of the global economy, the path is unlikely to be in a straight line.

Reporting by Priyadarshini Basu in Bengaluru; Editing by Sonia Cheema and Varun H K

Source Reuters