DE40: Varta shares plunge after debt restructuring announcement 📉

• European indices gain at the start of the week
• Varta is considering two debt restructuring proposals that would eliminate current shareholders
• Ryanair shares lose 13% after issuing mixed forecasts on ticket prices 

Overall market situation:

Monday's session in European stock markets is marked by gains. Germany's DAX is currently gaining 1.4%, France's CAC40 is adding 1.29% and the UK's FTSE 100 is up 0.71%. On the corporate side, there's a lot going on today in Varta shares, where we're seeing more than 70% declines. The macro calendar for today's session is relatively empty. 

Volatility seen today in the broad European market. Source: xStation 

The German benchmark DE40 is trading nearly 1.4% higher during Monday's session. The index is currently trading in the zone of key supports defined by the 50-day exponential moving average (blue curve on the chart). An up/down breakout may determine whether the index will further test the zone of local peaks near 18930 points or whether there will be a growing chance of a retest of the support set by the 100-day EMA (purple curve on the chart). Source: xStation

News: 

Shares of Dublin-listed Ryanair, ticker-listed in the U.S. (RYAAY.US) are currently losing nearly 13% as the company cut its fare forecasts due to low new customer growth. 

Highlights of earnings and forecasts:

• Profit after tax €360 million, -46% y/y, estimate €512 million 
• Customers 55.5 million, +10% y/y, estimate 55.0 million
• Load factor 94% vs. 95% y/y, 94.2% estimate
• Revenue €3.63 billion, -0.5% y/y, estimate €3.92 billion
• Additional revenue €1.3 billion, estimate €1.31 billion
• Planned revenues €2.33 billion, estimated €2.6 billion
• Total operating expenses €3.26 billion, +11% y/y, estimate €3.27 billion
• Although demand in the second quarter is strong, fares remain lower than we expected, and we now expect second quarter fares to be significantly lower than last summer (previously expected to be flat or slightly higher).
• The company continues to forecast 198 to 200 million customers in 2025, with an estimated 199.06 million

According to people familiar with the matter, Porsche AG (P911.DE) is considering acquiring a stake in Varta AG (VAR1.DE), as the troubled battery maker considers options to restructure its debt. Varta shares are currently losing more than 70%. The shares fell by more than two-thirds following Sunday's announcement that two remaining turnaround proposals would result in delisting, and that shareholders - with the exception of Austrian majority owner Michael Tojner - would receive no compensation.

Analyst action:

Barry Callebaut with a “buy” rating at Citi; target price of 1,700 Swiss francs

Evolution reduced to “equal-weight” at Morgan Stanley; target price of SEK 1210.

Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP