UBS raises FTSE 100 target on higher earnings outlook

UBS Switzerland raised its December 2026 FTSE 100 target to 11,000 (from 10,500), citing a stronger earnings outlook driven largely by elevated oil and gas prices and strong single-stock performance. The bank lifted its UK earnings growth forecast to 11% for 2026 (from 5%) and expects around 10% earnings growth into 2027, while noting the FTSE 100’s forward P/E is 13.2x versus a 12.8x historic median. UBS favors cyclical sectors aligned with secular themes in Europe (consumer discretionary, health care, industrials, IT, real estate) but still sees less upside for UK equities versus global markets due to limited exposure to high-growth themes. The upgraded target and earnings revisions are bullish for the FTSE 100, supported by energy sector strength, though UBS warns upside is constrained relative to global peers.