Deutsche Börse: UBS still a buyer.
(CercleFinance.com) - This morning UBS confirms its buy rating on the stock of the German stock exchange operator Deutsche Börse (DB), which last week published interim results, which were frowned on by the market.
UBS maintains its target price for the share at 110 euros, meaning upside potential of over 20%.
Admittedly, in Q2, the group's revenues increased by just 1.5%, while operating profit fell 2.3% short of expectations. At fault - according to UBS - was Eurex, DB's trading platform for derivatives and futures contracts.
In any case, Deutsche Börse is well on its way to reaching the bottom of its earnings growth target range (from 10% to 15%) relative to 2016. In H2, although UBS expects Eurex to remain in trouble, DB's revenues should benefit from other activities and increase by 5% y-o-y, boosted by operating income (+8% according to UBS). Its full-year earnings would therefore increase by 11%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
UBS maintains its target price for the share at 110 euros, meaning upside potential of over 20%.
Admittedly, in Q2, the group's revenues increased by just 1.5%, while operating profit fell 2.3% short of expectations. At fault - according to UBS - was Eurex, DB's trading platform for derivatives and futures contracts.
In any case, Deutsche Börse is well on its way to reaching the bottom of its earnings growth target range (from 10% to 15%) relative to 2016. In H2, although UBS expects Eurex to remain in trouble, DB's revenues should benefit from other activities and increase by 5% y-o-y, boosted by operating income (+8% according to UBS). Its full-year earnings would therefore increase by 11%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.