Goldman Sachs is most bullish on Japanese and European equities in 2014, according to the investment bank's latest asset allocation report, maintaining an overweight rating on both markets.
It set a 2014 target of 1450 for Japan's Topix index, and 360 for the Stoxx Europe 600 index - or 16 and 12 percent higher than current levels, respectively. The indexes have risen 45 and 15 percent so far this year.
(Read more: The verdict on Abenomics, one year on)
"We expect steady progress on the Abenomics' growth reforms during 2014, think the reflation story will support returns, and see the positioning as relatively light," Goldman strategists wrote in a report on Tuesday.
In Europe, Goldman expects corporate margins to pick up from cyclically low levels, and for that to support returns.