Berenberg initiates Grenke with 'buy' as recovery gains traction

Grenke AG

20/11/2025 07:48

** Berenberg initiates German leasing company Grenke GLJn.DE at "buy", says its recovery is gaining traction and it's time for a re-rating

** Shares in Grenke are seen up 6.7% in early Frankfurt trade

** New business was muted from 2020 to 2022, but it has picked up since 2023, Berenberg says

** Net interest income is expected to grow strongly, as old, low-margin business is replaced and margins gain stability, it adds

** Grenke is trading close to historical lows, at a significant discount to its fair value, Berenberg says

** Positive earnings momentum should help the company regain investor trust and be revalued, the broker says, setting its PT at EUR 29, compared to Wednesday's close of EUR 13.04

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))