Hold Rating for flatexDEGIRO AG: Balancing Short-Term Challenges with Long-Term Growth Prospects

Analyst Martin Comtesse of Jefferies maintained a Hold rating on flatexDEGIRO AG (FTK – Research Report), retaining the price target of €17.00.

Martin Comtesse has given his Hold rating due to a combination of factors affecting flatexDEGIRO AG’s financial outlook. The company’s recent quarterly performance showed a net profit that was significantly below market expectations, primarily due to challenges posed by lower interest rates. This shortfall indicates potential difficulties in achieving immediate growth targets, as the company anticipates no growth in FY25, with higher trading commissions needing to offset the decline in interest income.
Despite these short-term challenges, the company has set ambitious targets for 2027, projecting substantial earnings growth in FY26 and FY27. These long-term growth prospects suggest a positive outlook, but the current uncertainties and the need for strategic adjustments in the near term justify a Hold rating. Martin Comtesse’s assessment reflects a balanced view, recognizing both the immediate hurdles and the potential for future growth.