Keefe, Bruyette & Woods lifts Deutsche Boerse PT to EUR263

Published 18/02/2025, 13:58
Keefe, Bruyette & Woods lifts Deutsche Boerse PT to EUR263

On Tuesday, Keefe, Bruyette & Woods analyst Kyle Voigt increased the price target on Deutsche Boerse (ETR:DB1Gn) AG (DB1:GR) (OTC: DBOEY) shares to €263.00 from €247.00, while maintaining a Market Perform rating on the stock. The adjustment follows Deutsche Boerse’s reported earnings, which surpassed both Keefe, Bruyette & Woods’ and consensus estimates.

Deutsche Boerse achieved a reported earnings per share (EPS) that exceeded Keefe, Bruyette & Woods’ expectations by €0.22 and consensus estimates by €0.33. The better-than-anticipated results were attributed to several factors, including higher revenues contributing an additional €0.04 to EPS, reduced operating expenses adding €0.02, a lower tax rate providing a €0.06 boost, improved results from financial investments by €0.07, and decreased net financial expense augmenting EPS by €0.03.

The primary driver behind the revenue beat was noted as stronger Net Interest Income (NII) from Securities Services. The increase in NII is linked to higher cash balances, which Voigt believes will be the main contributor to Deutsche Boerse’s elevated EPS forecasts for the years 2025 and 2026. InvestingPro subscribers can access 10+ additional ProTips and comprehensive financial metrics to better understand the company’s growth trajectory and valuation metrics, including its current P/E ratio of 23.28.

In his commentary, Voigt explained the rationale behind the revised price target, stating, "The revenue beat was mostly driven by stronger NII (Securities Services), and this is the main driver of our higher ’25 and ’26 EPS estimates -- mostly as a result of higher cash balances. Raising 12-month PT to €263 from €247."

The new price target of €263 represents Keefe, Bruyette & Woods’ outlook for Deutsche Boerse’s stock performance over the next 12 months, reflecting the firm’s analysis of the company’s recent financial results and future earnings potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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