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Investing.com - UBS initiated coverage on flatexDEGIRO AG (FTKn:GR) (OTC:FNNTF) with a Buy rating and a price target of EUR36.50 on Friday.
The investment bank views the European online broker as well-positioned to gain market share through its dual-brand strategy, which allows for customized price and product offerings across Europe compared to regional brokers.
UBS considers the stock relatively inexpensive at 18x its 2026 estimated price-to-earnings ratio, especially given the forecasted 23% three-year earnings per share (EPS) growth compound annual growth rate (CAGR), which outpaces the 10% projected for its closest competitors.
The firm’s EPS estimates for 2025-2027 stand 3-7% above consensus, with UBS believing that market expectations underestimate customer growth potential, particularly from cryptocurrency trading.
UBS also highlighted flatexDEGIRO’s revenue growth opportunities from new recurring revenue streams as a factor in its positive outlook for the company.
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