The outlook for European corporate earnings is finally becoming much brighter thanks to a weak euro, a drop in oil prices and monetary stimulus, analysts say.
Growing optimism has helped boost the pan-European Euro Stoxx 600 index rise some 30 percent from a low hit in mid-October, raising hopes that earnings growth will play catch-up after lacklustre performance thanks to the global financial and European economic crises.
"We don't see the European market as overvalued at this point in time. But I think it's a fair comment to say we do need earnings to come through for the bull market to continue," Robert Parkes, director for equity strategy at HSBC Bank in London, told CNBC.
"We think that will happen and we have quite a punchy forecast for earnings growth in continental Europe this year of 25 percent, which is about double consensus expectations," he said.