DE40: Unicredit share prices surge; DAX in zone of important resistance

• Stock indices in Europe gain at the start of the week
• Attention in the banking sector turned towards UniCredit, Santander and Lloyds
• Delivery Hero shares under pressure despite better results 

European stock indices are starting the new trading week in a slightly better mood. Germany's DAX is currently gaining 0.25%, Italy's FTSE MIB is up 1.20% and France's CAC 40 is adding 0.12%. In the banking sector, attention turns towards UniCredit, which reported significantly higher quarterly results. In the same sector, the shares of Santander (SAN1.ES) and Lloyds (LLOY.UK) are performing less well, following the Financial Times announcements regarding the use of these banks by Iran to circumvent international sanctions. 

Source: xStation5

DAX (DE40) futures are recording moderate gains today and are currently trading in the zone of a key resistance barrier, defined by the local tops of the consolidation zone initiated at the beginning of the second half of December 2023. A breakout above the aforementioned barrier or the zone of local minima around 16,900 points could determine future sentiment on DE40 contracts.

 Company news

Shares of Delivery Hero (DHER.DE) are losing nearly 4% during today's session due to the reaction to the company's preliminary results. The financials show that the company increased sales in line with its forecasts last year and forecasts higher profitability in 2024. Revenues were €10.5bn in 2023, compared to the €10bn expected by analysts, according to LSEG data.

The group's GMV (gross merchandise value), the total value of all orders on its platforms, rose 6.7 per cent year-on-year to €12.3 billion in the fourth quarter of 2023 and 6.8 per cent to €47.6 billion for the full year 2023. The company's shares are losing ground today despite the improved performance, which may be due to rumours of a potential failed sale of Foodpanda's operations in selected Southeast Asian markets. However, the company denies these announcements.

In the Italian market, UniCredit (UCG.IT) led the way today, reporting its Q4 2023 results. The company's results turned out to be much better than analysts had expected. The bank's shares are currently gaining nearly 10%. 

Selected financial result positions:

- Net profit: €2.81 billion (estimated €999.6 million)

- Net interest: €3.61 billion (estimate €3.46 billion)

- Revenue: EUR 5.98 billion (estimate EUR 5.57 billion)

- Provision for credit losses: EUR 300 million (estimate EUR 686.2 million)

Profit for 2023 to be fully distributed to shareholders and to remain the same in 2024.

UniCredit shares are trading at their highest levels since October 2015. Source: xStation

Barclays upgrades Jeronimo Martins (JMT.PT) rating due to its long-term growth prospects. New rating at 'outperform'; previously it was 'equal-weight'. The bank sees around 20% discount to historical multiples as an attractive entry point.

Analyst activity

• Adidas (ADS.DE) upgraded to 'outperform' at RBC. Target price set at €200.00. The bank comments that "earnings before interest and taxes (EBIT) may be higher than expected due to conservative forecasts for currency translation and earnings from the Yeezy brand."
• BASF (BAS.DE) rated 'outperform' at CICC. Target price set at €52.00