Following publication of DBAG’s Annual Report 2021/2022, all but one of the analysts covering our share have maintained their “buy” rating. Along with a “neutral” rating from the J.P. Morgan Cazenove analyst, there are six unchanged “buy” recommendations. Three of the six analysts that provide a price target have actually raised it (Kepler Cheuvreux, Hauck & Aufhäuser, Warburg Research). Six analysts have now set the target price on a six to twelve months forward basis at between 36.00 euros and 47.00 euros, with the average being 40.98 euros. Compared to the current share price of 28.65 euros (Xetra closing price as at 10 January 2023), this would suggest potential upside of around 12 euros per share, or around 43 per cent.
After net income in the financial year 2021/2022 was burdened due to a difficult capital markets environment, the share is now valued as attractive, especially in terms of the “risk/reward profile” (Kepler Cheuvreux). “We believe that a recovery in general equity market conditions should produce positive momentum for DBAG in 2023. Stable multiples and improving performances of DBAG’s portfolio companies point to an attractive risk/reward profile after a difficult and volatile 2022”. The Kepler Cheuvreux analyst also highlighted DBAG’s long-term oriented business model and its market position: “DBAG has a unique and long-term oriented private equity business model. The company not only advises and manages the DBAG funds but also makes Long-Term Investments with its own funds, both as a co-investor and independently. Its superb market reputation, excellent network as well as its highly skilled investment team provide the foundation for strong value creation.”
In addition, the new outlook was received as encouraging, said the Warburg Research analyst: “Overall, DBAG’s outlook should be reassuring and suggests a recovery of operating performance. Also valuation multiples could have hit the trough, suggesting a solid operating recovery going forward.”
Research reports are principally addressed to investment professionals and are therefore not available to the public. For legal reasons, only the reports from Warburg Research, SRC Research and Edison Research are available to download from the DBAG website.
Baader Helvea Equity Research, 2 December 2022
Hauck Aufhäuser Investment Banking, 6 December 2022
Jefferies Equity Research, 20 October 2022
J.P. Morgan Cazenove, 21 October 2022
Kepler Cheuvreux, 4 January 2023
SRC Research Update, 5 December 2022
Warburg Research, 2 December 2022