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A Deutsche Bank strategist said that European companies' profits in the third quarter may once again exceed expectations, which is expected to become a short-term catalyst for the stock market. The research team led by Maximilian Uller predicted that the profit growth rate of European companies could reach 25%, which is about 5 percentage points higher than the market's unanimous expectations. The team believes that inflation brings benefits rather than impacts, and companies can pass on rising investment costs to product sales prices, thereby boosting revenue and profit margins. Excluding the energy sector, the profit growth rate is expected to be 15%.
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A Deutsche Bank strategist said that European companies' profits in the third quarter may once again exceed expectations, which is expected to become a short-term catalyst for the stock market. The research team led by Maximilian Uller predicted that the profit growth rate of European companies could reach 25%, which is about 5 percentage points higher than the market's unanimous expectations. The team believes that inflation brings benefits rather than impacts, and companies can pass on rising investment costs to product sales prices, thereby boosting revenue and profit margins. Excluding the energy sector, the profit growth rate is expected to be 15%.
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