Goldman Sachs cuts FlatexDegiro to 'neutral', flagging uncertainties

flatexDEGIRO SE

07/12/2022 09:59

** Goldman Sachs cuts FlatexDegiro  FTKn.DE  to "neutral"
from "buy" after the German online broker cut its guidance and
received a special audit report from German financial watchdog
BaFin
    ** The broker flags uncertainties going into 2023, such as
persistent weak trading environment, regulatory uncertainties
and negative cost headwinds
    ** It cuts its estimates for numbers of trades by an average
of 28% for 2023/24 as a result of an uncertain trading
environment and continued external pressures
    ** GS highlights BaFin's ruling and resulting increase of
capital requirements, which it sees will limit the company's
ability to develop more product
    ** It further sees likely postponing of capital returns to
shareholders until after the increase in capital requirements
has been reversed
    ** FlatexDegiro's stock extends Monday's losses, when it
slumped 37%, and slides around 4% -- heading for its worst
weekly percentage drop ever if losses hold
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))