Deutsche Börse: Upgrading To Buy On Improved Growth Visibility And Capital Returns

Mare Evidence Lab5.96K FollowersFollow5ShareSavePlay(7min)CommentsSummaryJanuary trading data confirm a solid start to the year, while updated medium-term targets point to accelerating operating leverage, with EBITDA growth expected to outpace revenue growth through 2028.The Allfunds deal, structured with a reduced cash component, improves balance sheet flexibility and aligns interests for future growth.Higher EPS growth expectations, combined with increased buyback capacity and a progressive dividend policy, support an upgrade to Buy. Meinzahn/iStock Editorial via Getty Images Following the Q3 earnings release, we reiterated our Equal Weight stance on Deutsche Börse AG (DBOEY)(DBOEF). We reported how the potential Allfunds could be accretive to earnings, but it would likelyThis article was written byMare Evidence Lab5.96K FollowersFollowBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.