Investors are too pessimistic about the outlook for companies in Europe and they should reconsider because there is real value in the region, James Bevan, CIO of CCLA Investment Management, told CNBC.
"There is ample room for European companies to positively surprise (with earnings results) and people should reconsider being underweight," Bevan said.
Investors should “look much more seriously at the real value that is available,” he added.
Meanwhile, UBS raised its outlook for next year’s earnings per share of European companies, expecting profits to grow by 25 percent from a previous estimate of 15 percent. UBS said that the improving macro economy would bring a bounce back in earnings growth next year.
Goldman Sachs also raised its expectations for European corporate growth to 40 percent from 34 percent for 2009.
Bevan is also positive on the Japanese economy and recommends “quality” companies such as Sharp and Cannon. Watch the video above for the full interview.
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