DE40: Bayer drops 6% after new court ruling

• European markets slightly down at the start of the week
• Ryanair results sour sentiment in airline sector
• Bayer drops sharply after new court ruling 

Overall market situation:

European stock indices are trading in a mixed mood at the start of an interesting week. The German DAX is currently losing 0.51%, with DE40 contracts losing 0.3%. Investors' attention may turn towards the Dallas FED Manufacturing regional data in the US today. Tomorrow, Microsoft, Alphabet and AMD, among others, will present their results.

European companies listed during Monday's trading session are currently trading at mixed levels. Source: xStation 

The German benchmark DE40 is losing more than 0.3% during today's session. The benchmark is still trading in a broad consolidation zone close to historical highs. Source: xStation 5

News:

Companies in the aviation sector are trading today under downward pressure triggered by Ryanair's (RYAAY.US) weaker quarterly results. The main reason for the weaker results was largely due to higher fuel costs. 

THIRD QUARTER RESULTS

• Adjusted profit after tax EUR 15 million, -93% y/y
• Operating loss EUR 18.9 million vs. profit EUR 151.4 million a year ago
• Revenues EUR 2.70 billion, +17% y/y, estimated EUR 2.72 billion
• Additional revenue €949.5m, +9.7% y/y, estimated €948m
• Planned revenue €1.75bn, +21% y/y, estimated €1.75bn
• Total operating expenses €2.72bn, +26% y/y, estimated €2.62bn
• Fuel and oil expenses €1.22bn, +34% y/y, estimated €1.17bn
• Airport and handling charges €326.4m, +14% y/y
• Depreciation and amortisation costs EUR 263.4 million, +24% y/y, estimated EUR 377.6 million
• Staff costs EUR 382.2 million, +30% y/y, estimated EUR 343.6 million
• Customers 41.4 million, +7.5% y/y, estimated 41.16 million
• Load factor 92% vs. 93% y/y, estimated 92.3%

Source: xStation  

Bayer (BAYN.DE) shares are losing nearly 6% after the company was ordered to pay a $2.2 billion fine to a former Roundup user who blamed the herbicide for causing cancer. Analysts say the decision underscores the risks the company faces from legal action more broadly.

Source: xStation 

Shares in Wacker Chemie (WCH.DE) are recovering from this morning's losses after the company stated in the release to its quarterly report that a recovery in demand "is not currently evident". Trading conditions appeared weak, but as analysts pointed out, this condition was anticipated. 

PRELIMINARY RESULTS FOR 2023

Preliminary Ebitda €824m (14% lower than Morgan Stanley consensus)

Preliminary Ebitda margin 13%

Preliminary operating profit €405m

Preliminary net income €330m

Preliminary sales €6.4b

Analyst recommendations:

Barclays raised its recommendation on shares of ProSieben (PSM.DE) to an "overweight" rating.Target price of €8. 

Hensoldt (HAG.DE) upgraded to a "buy" rating by Citi. Target price of €37.7.