The brokerage’s expected year-end EPS growth of above 11% for the ACWI falls below consensus estimates
Published Fri, Jul 11, 2025 · 04:04 PM
CITIGROUP on Friday (Jul 11) introduced its mid-2026 target for the MSCI All Country World Index (ACWI) Local as it expects global equity markets to be rangebound until year-end, with “meaningful” gains coming in the first half of next year.
The Wall Street brokerage set a target of 1,150 for the benchmark global equity index, implying an upside of about 5 per cent to its last close of 1,100.213.
“Our targets imply the most upside in Japan and Europe over the medium term,” Citi said.
The brokerage maintained its preference for European stocks among global equities, but downgraded Japan to “neutral” on concerns over near-term tariff risks and the strength of the Japanese yen.
Global equities have climbed back to all-time highs after a volatile first half of 2025, even as the economic outlook looks uncertain broadly due to US President Donald Trump’s tariffs and geopolitical tensions.
Citi set its 2026 year-end earnings per share (EPS) growth for the index at above 11 per cent, which remains below consensus estimates of more than 13 per cent.
“Though still positive on average, bottom-up EPS forecasts around the world have been under pressure, as markets grapple with trade tensions and geopolitical uncertainty,” the brokerage said, as it estimated an EPS growth of just above 5 per cent for this year.
Citi maintained its “neutral” stance on US equities, and “underweight” on emerging markets and Australia.
On the global sector front, it reiterated its “overweight” view on technology and “underweight” rating on consumer stocks. REUTERS
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