(News Bulletin 247) – Deutsche Bank announced on Thursday that it had downgraded its recommendation on Euronext, reduced from ‘buy’ to ‘hold’, with a price target lowered from 103 to 69 euros due to the absence of catalysts around the stock .
In a note sent to its customers, the financial intermediary acknowledges that the stock market operator has done “good work” over the past ten years in developing and diversifying its activities.
However, he stresses that the cash equity markets, like the related businesses (clearing and settlement-delivery), continue to represent a significant part of the group’s activity, with the volatility in terms of results associated with it.
Given the lackluster market environment at the moment, DB is thus forecasting another quarter of negative growth in the second quarter of 2023, both in terms of revenues and results.
Faced with this dynamic deemed unfavorable, the analyst prefers to downgrade his advice on the title despite a valuation deemed ‘cheap’ vis-à-vis his peers, with a PER of 11.5x by 2024.
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