- European markets make slight gains to end the week
- Investors focus on individual company results
- Barclays, Deutsche Bank and Baader Helvea modify their recommendations
Overall market situation:
This week's last trading session on European markets brings mixed investor sentiment. Most indices on the Old Continent are currently posting marginal intraday gains. The main focus of today's session is on the results of individual listed companies. A revision of the CPI data from Germany confirmed the first reading.
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European companies listed during Friday's trading session are currently trading mixed. Source: xStation 5
The German benchmark DE40 is holding during Friday's session within the limits set by the 50-period moving average (blue curve on the chart, H4 interval). The main levels to watch all the time remain the areas of minima near 16900 points and local peaks near 17120 points. Source: xStation 5
News:
Ceconomy (CEC.DE) shares are currently losing more than 3% following the publication of worse-than-expected EPS and EBIT results.
FIRST QUARTER RESULTS
Adjusted operating profit EUR 248 million, estimated EUR 241.7 million
Ebit 218 million euro, estimated 244.7 million euro
EPS 0.30 euro, estimated 0.38 euro
Sales 7 billion euro, estimated 6.92 billion euro
COMMENTARY AND CONTEXT
In 2024, Ceconomy expects a slight increase in total sales adjusted for currency effects and portfolio changes and a marked improvement in adjusted EBIT.
Source: xStation
The shares of Carl Zeiss Meditec (AFX.DE) also performed very well during today's session, gaining nearly 7%. The company's results exceeded the expectations of analysts, who were still cautious in their assessment of the company's business background last time.
FIRST QUARTER RESULTS
Ebit 43.5 million euro, estimated 41.5 million euro
Ebit margin 9.2%, estimated 8.98%
EPS 0.42 euro vs. 0.57 euro y/y
Revenues 475. million euro, estimated 469.1 million euro
Revenue from ophthalmic devices 351.1 million euro
Revenues from microsurgery 123.9 million euro
COMMENTARY AND BACKGROUND
Revenues are expected to grow at least in line with market growth.
EBIT margin is expected to gradually improve over the remainder of the year.
EBIT for the full financial year 2023/24 is expected to be close to the previous year's level.
Source: xStation
Analyst recommendations:
Barclays reiterated an "Overweight" rating on Adidas (ADS.DE) shares. Target price at €218.
Barclays reiterated an "Overweight" rating on shares of Puma (PUM.DE). Target price of €42.
Deutsche Bank upgraded its rating on shares of Verbio (VBK.DE). Target price of €21.
Baader Helvea downgraded its recommendation for the shares of Nemetschek (NEM.DE) to "reduce" from the previous "add" rating. Target price set at €92
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