- Porsche cuts full-year revenue forecast
- Morgan Stanley strengthens Fresenius shares
Overall market situation:
Tuesday's session on European stock markets is marked by a continuation of the gains from yesterday's session. Germany's DAX is currently gaining 1.14%, France's CAC40 is adding 0.43% and the UK's FTSE 100 is up 0.34%. Investors' attention turns today to companies' quarterly results. In Europe, high volatility prevails primarily on Porsche, SAP and Fresenius shares. LVMH (MC.FR) will present its results after the close of the European session. In the US, it will be the results of Alphabet (GOOGL.US) and Tesla (TSLA.US).
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Volatility currently observed in the broad European market. Source: xStation
Germany's benchmark DE40 is trading nearly 0.52% higher during Tuesday's session. The index is currently trading above the zone of key barriers set by the 50-day exponential moving average (blue curve on the chart). An upward breakout could theoretically open the way to test the zone of local peaks near 18930 points in the medium term. The most important support level all along remains the area defined by the 100-day EMA (purple curve on the chart). Source: xStation
News:
Porsche (P911.DE) shares are losing more than 4.5% today after the sports car maker lowered its full-year revenue forecast, saying a shortage of aluminum parts caused by a flood at a supplier will affect production. The new guidance implies a cut of about 10% from Ebit's consensus estimate, Morgan Stanley reported.
ANNUAL FORECAST
- The company forecast revenue in the range of 39 billion euros to 40 billion euros, previously estimated at 40 billion euros to 42 billion euros, analysts forecast 40.38 billion euros
- Operating return on sales in the range of 14% to 15%, previously forecast 15% to 17%, analysts forecast 15.8%
SAP (SAP.DE) shares are up as much as 7% today after the German software maker reported a 28% increase in its current cloud order book. The company's reiteration of cash flow guidance - despite higher cash outlays required due to ongoing restructuring - is seen as another positive.
Fresenius (FRE.DE) shares are gaining nearly 4% after Morgan Stanley raised its recommendation on the company's stock and listed it in its list of top investment ideas for the sector. Analysts communicated that the continued modernization of the portfolio supports the strengthening of the core business, which in turn should lead to an improvement in future operating results Free cash flow, return on capital employed and leverage - everything is “moving in the right direction,” - Morgan Stanley analysts concluded.
The bank is raising its EPS estimates for FY 24/25/26 by +1%/+5%/+6%, respectively. The target price was raised to 34 euros per share.
Other news coming from individual companies in the DAX index. Source: Bloomberg Financial LP
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