BofA expects Stoxx 600 Q1 EPS to rise 3% YoY, driven by an energy windfall from the Iran conflict.
Energy and basic materials sectors forecast the strongest EPS growth, while utilities and healthcare are projected to post negative growth.
BofA warns that underlying weakness could trigger mid‑year downgrades, citing a 2‑point March PMI drop to 50.6 and elevated energy prices.
Forward outlook shows an 8% EPS downside for Stoxx 600 by mid‑2026 and valuation gaps, with software at a 32% premium.