DE40: Deutche Bank falls after earnings release; Citi revises rating on Porsche shares 💡

• DAX extends declines
• Deutsche Bank loses after reporting Q3 results
• Citi raises recommendation for Porsche shares

General market situation:

Wednesday's session on European stock markets brings declines in most stock indexes. Germany's DAX is currently losing 0.42%. Britain's FTSE 100 is losing more than 0.44% at the same time. The French CAC40, meanwhile, is losing 0.74%. Investor attention today turns to corporate news and speeches by central bankers.

Volatility currently observed in the broad European market. Source: xStation

The German benchmark DE40 is trading nearly 0.61% lower during Wednesday's session. The key support/resistance points of the broad uptrend appear to remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak tested last week, which now serves as the main control zone for the supply and demand sides. Source: xStation

News:

Shares of Porsche AG (P911.DE) are up 2.6% today, although the gains have now been nearly erased after Citi upgraded the German carmaker's stock to a “buy” rating from an earlier “neutral,” saying Porsche has a great brand that investors are willing to invest in and a very low earnings base from which H1 2025 EPS could show growth compared to “steep declines” at many competitors. Porsche has faced a number of adversities this year, but is expected to see peak demand for new models and profitability with improved volume and pricing in FY25 and FY26. The target price has been set at 85 euros versus the previous 75 euros per share.

Deutsche Boerse (DB1.DE) shares are losing more than 1.5% in today's session, even though the company's Q3 results met analysts' expectations. The company is again raising its forecast for the fiscal year on the back of strong organic net income growth.

ANNUAL FORECAST

• Net profit €5.8 billion, previously estimated at €5.7 billion, analysts expected €5.81 billion
• EBITDA €3.3 billion to €3.4 billion, previously estimated €3.3 billion, analysts expected €3.33 billion

THIRD QUARTER RESULTS

• EBITDA €801.8 million , +17% y/y, estimated €807 million
• Net profit €444.9 million , +11% y/y, estimated €451.1 million
• Basic earnings per share €2.42 vs. €2.16 y/y, estimated €2.44

Shares of FlatexDEGIRO (FTK.DE) are losing more than 4.5% in today's session, after the investment company posted worse-than-expected results for Q3 2024. The worse results were mainly due to higher costs. Revenues performed in line with expectations and rose by a solid 10% y/y, but costs rose by about 5%, resulting in Ebitda that was 6%-7% below expectations.

Q3 RESULTS

• EBITDA €45.7 million, +14% y/y, estimated €49.1 million
• Revenue €111.7 million, +10% y/y, estimated €111.8 million

Adidas (ADS.DE) shares fall 1.9% after HSBC downgraded its recommendation for the company's shares from “buy” to “hold,” noting the lack of short-term catalysts needed for growth.

Deutsche Bank (DBK.DE) shares are losing nearly 1.5% in today's session after the bank's Q3 earnings came in disappointing. The bank missed estimates on this item and forecast higher full-year loan provisions.

Q3 RESULTS

• Sales and income from debt securities trading €2.1 billion, estimated €2.01 billion
• Common equity tier 1 ratio 13.8% vs. 13.9% y/y, estimate 13.7%
• Net income €7.50 billion, +5.2% y/y, estimated €7.31 billion
• Asset management revenue €660 million, +11% y/y, estimated €644.2 million
• Investment banking revenue €2.52 billion, +11% y/y, estimated €2.42 billion
• Private banking revenue €2.32 billion, -0.9% y/y, estimated €2.37 billion
• Corporate banking revenue €1.84 billion, -2.6% y/y
• Net profit €1.46 billion, +42% y/y
• Profit before tax €2.26 billion, +31% y/y, estimated €2.02 billion
• Adjusted expenses €5.00 billion
• Loan loss provisions €494 million, compared with €245 million y/y, estimated €431.4 million
• Non-interest expenses €4.74 billion, -8.1% y/y, estimated €4.92 billion

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