- Wednesday's session marked by moderate declines in Europe
- Speculation over Novartis' acquisition of MorphoSys lifts MOR.DE shares lower
- TeamViewer results above market expectations
European stock indices are losing during Wednesday's trading session. Despite continued gains in Chinese indices following new rumours suggesting the implementation of broad-based solutions to support the economy, the improved sentiment is not transferring to the Old Continent. Investors' attention during today's session will focus on US foreign trade balance data and speeches by Fed bankers. In Germany, DHL, MorphoSys and TeamViewer are the most volatile stocks today.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appŹródło: xStation5
Futures contracts on DAX (DE40) are recording a 0.35% decline today, negating the breakout above the barrier set by the upper limit of the consolidation zone initiated in mid-December 2023. It is worth mentioning that yesterday's D1 candle closed its body above the zone of historical highs, which from a technical analysis perspective could theoretically be considered a positive aspect. The most important support is consistently located in the zone of local lows from the end of December.
Company News
The German state-owned bank KfW plans to sell approximately 50 million shares of DHL (DHL.DE) worth nearly 2.17 billion euros. The shares, representing 4.04% of DHL, had an offer price of 43.45 euros, according to the document. After the share issuance directed to institutional investors, KfW's stake in the company will decrease from about 20.5% to around 16.5%, according to the Ministry of Finance. This, in turn, means that the free float of DHL has increased, but KfW remains the largest shareholder in the company. The company's shares are currently down by 4%.
Adam Feuerstein stated in STAT News that Novartis (NOVN.CH) intends to withdraw from the recently announced acquisition of MorphoSys (MOR.DE). However, a spokesperson for the German pharmaceutical company MorphoSys said in an email statement to Bloomberg News that "this information is incorrect." Feuerstein acknowledges that the opinion in his report is speculation but cites "separate conversations with two people familiar with pelabresib and internal debate within Novartis" about the transaction, Bloomberg notes. Nevertheless, MOR shares are down by nearly 2.2% following these speculations.
Siemens Energy (ENR.DE) reported a net profit of 1.58 billion euros in the first quarter, citing a one-time gain related to the sale of an Indian affiliate formerly part of the dominant Siemens AG. The company's stock reacted with a 0.8% increase, with preliminary financial data for the first quarter presented a month ago.
TeamViewer's (TMV.DE) stock price rose by approximately 10% as the German software company announced higher-than-expected revenues and profits in the fourth quarter. The company's revenues increased by 8% to 163 million euros, slightly above analysts' forecast of 160 million euros. Adjusted EBITDA turned out to be 2.5% higher than the consensus.
Analyst Actions
- Bernstein maintained a "neutral" rating for Porsche (P911.DE) shares; the target price is set at 90 euros.
- Barclays rated DHL Group (DHL.DE) shares as "buy" with a target price of 49 euros.
- Jefferies maintained a "buy" rating for Hannover Re (HNR1.DE) shares. The target price is set at 250 euros.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
