Analysts see great potential in DBAG shares: average target price of 43,48 euros

“Solid first half-year performance, with attractive acquisitions and disposals” and “growth potential of at least 25 per cent” – these are just some of the positive analyst conclusions on Deutsche Beteiligungs AG’s (DBAG) half-yearly financial report published on 8 May 2024. In addition, six analysts issued a buy recommendation, highlighting both the strong net asset value (NAV) performance and executed transactions.

In view of the “solid outlook, confirmed forecast and more prudent valuation methodology”, Kepler Cheuvreux analyst Sven Sauer confirms his buy rating for the DBAG shares, stressing in particular the divergence between the current share price and forecast NAV. Here, he points out that the discrepancy amounts to 25 per cent – even when basing assumptions on the lower end of the forecast for the current financial year.

Hauck & Aufhäuser analyst Marie-Therèse Grübner also mentions the share price potential, observing that “the DBAG portfolio is currently valued at 1.1 times acquisition cost”, compared with historical disposal proceeds of 2.5 times acquisition cost.

DBAG’s net asset value rose by six per cent to 673.1 million euros in the first six months of the current financial year. This encouraging performance can be attributed in particular to successful disposals and to the healthy operating performance of portfolio companies. Despite the challenging macroeconomic environment, DBAG was very active on the M&A market, effecting six transactions in the year to date, including four disposals and two new investments. The sale of in-tech and the partial disposal of Solvares once again highlight DBAG’s expertise and robust network in the IT services and software sector, an area of strong structural growth.

Analyst assessments are essentially a look ahead to the future and depend on the potential of DBAG’s portfolio, which mainly comprises companies from the industry and industrial technology, industrial services, broadband/telecommunications, healthcare and IT services & software sectors. While most investments are based in Germany, some are located in neighbouring European countries and Italy. The investments generated a positive performance, leading to “attractive acquisitions and disposals” and prompting SRC analyst Stefan Scharff to confirm his buy rating and raise the target price to 46 euros.

All in all, six analysts issued a buy recommendation for the DBAG shares. Their average target price is 43.48 euros, which corresponds to a growth potential of 59 per cent vis-à-vis the current share price of 27.30 euros (Xetra closing price on 14 June).

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Research reports are geared primarily towards 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, where the table of analyst recommendations and target prices is continually updated.