Jefferies Anticipates Upswing in European Midcaps for H2

Jefferies has issued a bullish outlook for European midcap stocks as the market enters the second half of the year. The brokerage’s research team cites improving earnings momentum, a more favorable policy environment, and a narrowing valuation gap relative to larger peers as the primary catalysts behind the upside thesis. While macro‑risk factors such as inflationary pressures and geopolitical uncertainties remain a concern, Jefferies believes that midcap names are well positioned to attract capital seeking higher risk‑adjusted returns. The firm maintains a cautious stance on earnings season volatility but signals confidence in the sector’s potential through the remainder of 2024.