Barclays Lifts STOXX 600 Target to 670, Upgrades Luxury After US-Iran Deal

Barclays has turned constructive on European equities, ending its underweight stance and raising the STOXX 600 year-end target to 670. The move follows a preliminary U.S.-Iran peace agreement that has eased geopolitical risks and lowered oil prices, reducing stagflation concerns for the region. The bank lifted its 2026 earnings growth forecast to 12% from 10% and upgraded luxury stocks to overweight while downgrading healthcare to underweight, favoring cyclically oriented Eurozone names over the U.K. The revised target implies roughly 6% upside from recent closes as the index trades near record highs.