STOCKS NEWS EUROPE-D.Bank sees DAX hitting 11,000 by end-2014

Deutsche Bank (Xetra: DBK.DE - news) has raised it target for Germany's DAX share index to 11,000 points by the end of 2014, an upside potential of about 19 percent from current levels, after gains of more than 20 percent so far this year.

The bank's earlier target for the index, trading flat at 9,222.77 points around midday on Wednesday, was 9,700 points.

"The DAX remains an exceptional play on global growth, in our view, and the latest global manufacturing PMIs for November indicate world GDP at a current run rate of +4.0 percent ... We believe this rate of growth will be sustained," the bank says.

Deutsche Bank expects an earnings growth of 14 percent for the index in 2014-15, more than consensus expectations of 13 percent, potentially helped by bottoming pricing power and stabilising margin estimates.

"We remain pro-cyclical and expect the DAX to outperform in Europe over the next 12 months."

Deutsche Bank analysts say that the German consumer spending shows decent strength and the trend should continue into 2014 because of the strongest annual consecutive increases in real wages since re-unification, stable taxation and rising disposable income for private households.

Key beneficiaries with significant exposure to the theme should include Beiersdorf (Other OTC: BDRFF - news) , Gerry Weber, Henkel (Other OTC: HELKF - news) , Osram , TUI (Xetra: TUI1.DE - news) , and Volkswagen (Other OTC: VLKAF - news) .

Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net