Europe's bulls run…but for how long?

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After an indifferent start, Europe's equity markets posted stellar gains on the first day of the brand new trading quarter, with many analysts predicting further upside for the region in the next three months.

The pan-European Euro Stoxx 600 index clocked gains of around 17 percent in the first quarter -- its best quarterly percentage gain since the third quarter of 2009 and the best first-quarter gain since 1998.

And Chris Beauchamp, a market analyst at IG Markets, is expecting more.

"I think the launch of QE (quantitative easing) has clearly handed the initiative to the equity bulls as far as Europe is concerned", he told CNBC via email.

"Essentially the 'Draghi put' is now in place and, while the concerns about euro zone disintegration can be put to one side, there is essentially no real reason to short European equities."

With 60 billion euros ($88.8 billion) a month being pumped into the economy by the European Central Bank (ECB), the euro has depreciated fiercely against other major currencies on the back of this extra liquidity.

The euro endured its worst ever quarter in early 2015, but has also provided a boost to export-focused companies in the region.

With the program open-ended, Beauchamp argued that investors can expect European stocks to follow a similar bull run to U.S. equities, which have been on the receiving end of three different quantitative easing programs by the U.S. Federal Reserve.

"We've seen big gains in stocks over the past two months, but there is a lot more to come," he said.

Martin Todd, co-manager of the Hermes Sourcecap European Alpha fund, detailed his five hidden "growth gems" in a research note this week.

He named Spanish airport operator Aena, Zurich-based food business Aryzta, financial services firm Wirecard, Spanish manufacturer Gamesa and Telecom Italia as "strong long-term growth potential."

Meanwhile, examining trends on the pan-European Euro Stoxx 50, Steve Miley, a technical strategist at, said he saw further upside into the second quarter after the benchmark resisted a deep correction late last year.

He noted that the benchmark pushed through a key monthly peak of 3,474 points in February -- which it last hit in 2008 – although it has since dropped back to trade around 3,450. Miley expects it to pick up once again and reach a May 2008 peak of 3,897 points in the second quarter of this year, possibly by the end of April.

Nonetheless, there are always downside risks and naysayers when it comes to such a consensus trade, with even U.S. investors now piling into European equities with cheaper valuations than their U.S. counterparts.

Hargreaves Lansdown Senior Analyst, Laith Khalaf, told CNBC via email that Greece was still a key risk, with negotiations over its debt problems yet to be resolved.

"(It) could yet throw the euro zone into disarray again, and while economic data has been better than expected, it has still not been what could be described as good," he said.

"Growth is still thin on the ground, though a declining currency should help to make the region more competitive in international markets."