Societe Generale forecast a lengthy emerging markets rally on Friday, becoming the latest bank to turn bullish on the sector following the Federal Reserve's surprise decision to maintain its $85 billion per month asset purchases.
Emerging markets (EM) stocks, bonds and currencies joined in Wednesday's global surge after the Fed announcement. Markets have since pulled back — although EM assets have held some gains — but analysts said the U.S. central bank's announcement will prove to be a pivotal moment in the longer-term.
(Read more: Let's party! Emerging markets cheer as Fed stays pat)
"After the highly significant Fed message, global emerging markets (GEM) are settling in in a new regime. That new regime is no longer a bear market, in our view," said Societe General analysts in a research note lead-written by EM Strategy Head Benoit Anne.
"While GEM is still in the process of digesting this massive Fed policy surprise, we believe that the market backdrop has strengthened considerably," the note added, saying now was the time to "turn tactically bullish."