As Draghi reassures, are Europe stocks a buy?

European stocks could rally on a declining euro and hints from European Central Bank (ECB) President Mario Draghi that further aggressive stimulus measures could be on the way—although not all analysts agree.

"My view is that going into the first quarter, the European market will be a 'buy'," Manish Singh, head of investments at Crossbridge Capital, told CNBC on Friday.

European stocks gained and the euro fell on Thursday after Draghi said the ECB was unified in its desire to instigate more stimulus programs if needed to boost the euro zone's struggling economy.

"Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate," Draghi said at his regular press conference.

"The Governing Council has tasked ECB staff and the relevant euro system committees with ensuring the timely preparation of further measures to be implemented, if needed."

Read MoreECB's Draghi: Disagreeing is 'normal'

European Central Bank Governor Mario Draghi speaks at a news conference during the World Bank/IMF annual meetings in Washington, Oct. 11, 2014.
Joshua Roberts | Reuters
European Central Bank Governor Mario Draghi speaks at a news conference during the World Bank/IMF annual meetings in Washington, Oct. 11, 2014.

Singh said he hoped the ECB would "follow up on some of the measures", which could prove positive for equities—particularly given his belief that the euro was set to weaken further.

The strategist said Draghi's plan to expand the ECB's balance sheet via asset purchases was "an open invitation to weaken the euro".

"That should be very positive for European equities at some point, which I hope is going to be until the end of the year," he added.

Read MoreTrack European stocks on Friday

The euro has declined almost 10 percent against the U.S. dollar since the start of the year, while European stocks have gained around 3 percent.

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
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DAX
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CAC
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IBEX 35
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On Friday, the euro was up around 0.2 percent against the dollar at 1.24, and the pan-European FTSEurofirst 300 Index was trading flat to slightly lower.

Read MoreCould a strong dollar derail Wall Street's rally?

Like Singh, Paul Mackel of HSBC forecast the euro would continue to decline.

"I think the path of least resistance is still for the euro to go down," the currency strategist told CNBC on Friday. "I think it is not unfair to think it is heading towards $1.20. It is very much in the sell zone."

However, Nomura's Bob Janjuah was unconvinced that a declining euro and hopes for further ECB action were grounds for buying European stocks.

"There is something that doesn't feel write about how the markets have traded in the last two or three weeks," he told CNBC on Friday.

"There are a lot of people on the sidelines thinking 'what the hell is going on here?'… I think it the underlying price action and details that are giving people cause for thought."