(Reuters) -J.P. Morgan upgraded its stance on the euro zone to “overweight” from “neutral” on Monday, noting that the equities in the region have become more attractive after several months of underperformance and policy support.

“The time is coming up to turn bullish on Eurozone equities,” J.P. Morgan strategists, led by Mislav Matejka said.

Euro Stoxx 50 has trailed the S&P 500 by nearly 18% since a strong first-quarter rally, but this relative underperformance could be used as a buying opportunity, Matejka said.

The strategists noted that with relatively cheaper valuations than their U.S. counterparts, and potential catalysts such as German stimulus, and improving euro zone credit impulse, could renew sentiment in the region.

The 15% tariff on European Union goods has also put to re

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