Deutsche Bank ups FlatexDegiro to 'buy' on rising profitability

flatexDEGIRO SE

24/01/2024 09:01

** Deutsche Bank raises German online broker FlatexDegiro
 FTKn.DE  to "buy" from "hold" on expected profitability
expansion and capital return opportunities
    ** "Unlike for most financial institutions, we continue to
see a substantial profitability improvement for FlatexDegiro in
2024," DB says
    ** The broker expects a 22% EPS growth in 2024 driven by
high single-digit revenue growth and disciplined cost control
    ** It points to the company's upcoming share buyback
programme which it says makes it an "attractive capital return
story"
    ** DB sees upside potential for the company in case of
further market recovery and would use any valuation weakness as
an entry point, noting limited downside in the core brokerage
business
    ** Out of 11 analysts that cover FlatexDegiro, seven rate
the stock "strong buy" or "buy,"​ four rate "hold" - LSEG

 (Reporting by Chiara Holzhaeuser)
 ((Chiara.Holzhaeuser@thomsonreuters.com))