DE40: Profit-taking after publication of Allianz results 💡

• European markets make slight gains at the end of the week
• Profit-taking on Allianz shares after earnings release
• Revision of GDP data for Germany fails to encourage confidence

Overall market situation:

European equity markets record moderate gains at the end of the week. The German DAX is recording minimal gains, but nevertheless continues to oscillate close to yesterday's closing levels. The situation is much better for markets such as the French CAC 40, which adds 0.58% intraday. The benchmark Euro Stoxx 50 is gaining close to 0.3% intraday. The macro calendar for today's session is empty. 

The final GDP reading for Germany for Q4 2023 came in at -0.4% y/y in line with expectations. The seasonally adjusted reading came out at -0.2% versus the earlier reading of 0.2%. In contrast, the final quarterly reading showed a loss of 0.3% q/q, also in line with expectations with the previous reading of -0.1% q/q.

European companies traded higher during Friday's trading session today. Source: xStation 5

The German benchmark DE40 is losing nearly 0.24% during Friday's session. The most important zone of possible support may now be the local minimum zone of the consolidation zone, which runs at 17,400 points. Source: xStation 5

News:

Allianz (ALV.DE) almost doubled its net profit in the fourth quarter compared to the previous year, however, the results themselves came in slightly below analysts' expectations. Net profit attributable to shareholders amounted to € 2.151 billion, compared to € 1.104 billion a year earlier. Analysts had forecast these profits at €2.186 billion. On the other hand, however, the company will raise the dividend paid to shareholders to €13.8 per share against €11.4 and announced a share buyback programme worth almost €1 billion. 

For 2024, the company forecasts an operating profit of between €13.8 billion and €15.8 billion, below expectations of €15.6 billion.

Source: xStation 

Deutsche Telekom's (DTE.DE) net profit fell from €1.99bn to €1.83bn year-on-year, while revenues declined slightly by 1.3% to €29.37bn. Quarterly adjusted Ebitda after leases increased by 0.5% to €10.01 billion, in line with analysts' forecasts. 

The company forecasts that adjusted earnings before interest, tax, depreciation and amortisation after leases will reach around €42.9bn in 2024, up 6% year-on-year. The company's shares are currently losing nearly 1.66%.

Other news about individual companies included in the DAX index. Source: Bloomberg Financial LP

Analyst recommendations:

Mercedes-Benz (MBG.DE) upgraded to an "overweight" rating by Barclays. Target price at €80. 

Porsche (P911.DE) with an "outperform" rating from CICC. Target price of €95.