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These stocks could deliver 40% returns by end-2016

Citi bank forecasts that European equities could deliver 40 percent returns by the end of next year, fueled by earnings per share (EPS) growth, plus macroeconomic expansion and higher liquidity.

"Our 40 percent 'grey sky' scenario for European equity returns to end-2016 is based on three key factors/forces: 1) QE-funded search for yield, 2) world-record yield/funding gap in Europe, 3) growth in Europe," said analysts led by Terence Sinclair, head of EMEA research at Citi, in a report on Monday.