Analysts Cut Profit 52% as Europe Valuations Hit 2-Year High

Analysts are lowering estimates for European earnings growth by 52 percent, clashing with investors whose confidence in the European Central Bank helped send equity valuations to a 2 1/2-year high.

While the Euro Stoxx 50 Index surged 25 percent over the past four months, matching the three biggest rallies in the past decade, more than 12,000 estimates compiled by Bloomberg show net income will grow 13 percent next year, down from the 27 percent forecast in January. The gauge closed Sept. 28 at 9.5 times projected 2013 profit, near the highest since April 2010.