Deutsche Boerse stock price target lowered to €298 by Deutsche Bank

Investing.com - Deutsche Bank (ETR:DBKGn) lowered its price target on Deutsche Boerse (ETR:DB1Gn) AG (DB1:GR) (OTC:DBOEY) to €298 from €302 while maintaining a Buy rating on the stock. The $57.67 billion market cap company currently trades at a P/E ratio of 25x, according to InvestingPro data, which also shows the company maintains an impressive 98.89% gross profit margin.

The price target adjustment follows Deutsche Boerse’s rare earnings miss in the first quarter of 2025, though Deutsche Bank noted investors quickly bought the dip due to the "largely non-recurring nature of the revenue miss" and positive outlook for European capital markets. The company has demonstrated consistent shareholder returns, having maintained dividend payments for 25 consecutive years.

Deutsche Bank forecasts total revenue growth of 3% year-over-year for Deutsche Boerse in the second quarter of 2025, compared to the double-digit growth expected for Euronext (EPA:ENX), which the bank considers its top pick in the sector.

Excluding the ongoing normalization of treasury results, Deutsche Bank projects a "very healthy" 9% year-over-year growth for Deutsche Boerse, driven by the Trading & Clearing and Fund Services segments.

Deutsche Bank trimmed its forecasts for Deutsche Boerse by 2%, noting the stock trades at 19 times 2027 estimated earnings per share and 12 times 2027 estimated EV/EBITDA, with the bank continuing to favor the company’s "quality growth profile."

In other recent news, Deutsche Boerse AG reported a 6% increase in earnings per share (EPS) for the first quarter, reaching EUR2.86, although this was 2% below consensus expectations. Kepler Cheuvreux analyst Tobias Lukesch downgraded the stock from Buy to Hold, maintaining a price target of EUR280. Lukesch highlighted concerns about potential underperformance in net interest income, leading to a downward revision of adjusted EPS forecasts by 3-5% for 2025-2027. Despite the downgrade, Deutsche Boerse’s stock has shown significant growth, with a 25% increase year-to-date and a 52% rise over the past year. Meanwhile, BNP Paribas (OTC:BNPQY) Exane raised its price target for Deutsche Boerse to EUR283 from EUR269, maintaining an Outperform rating. The firm cited Deutsche Boerse’s strong earnings momentum, driven by activity in rates and energy trading, as well as its attractive valuation compared to peers. Stifel analysts also noted the company’s defensive qualities in derivatives and growth opportunities in funds, data, and custody services. The raised price target reflects a 3% increase in EPS estimates, indicating confidence in the company’s continued positive performance and market position.

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