Continental's shares remain relatively stable due to a spinoff, while Scout24 experiences pressure
In the world of business, several significant developments have taken place over the weekend.
The US company Advanced Drainage Systems (ADS) is reportedly in advanced negotiations to buy Norma Group's water management business. While other bidders are also said to be interested, ADS is the main known participant in the deal, with a transaction's enterprise value set at 153 million euros. This news has been well-received by Norma Group investors, as the stock rose by 5.3% over the weekend.
Meanwhile, in the German market, DHL Group shares fell by 1.2% after Deutsche Bank downgraded the logistics provider to "hold" due to global trade disputes, among other reasons. However, there is hope for investors as DHL's stock is currently on a takeover course.
Auto supplier Stabilus (WKN: STAB1L) is undergoing a cost-cutting program, which is expected to put short-term profits under pressure but improve efficiency in the long run. The company is also shedding 450 jobs as part of this program. As a result, Stabilus shares fell 2.8 percent and were among the weakest stocks in the SDAX.
The so-called "big expiry" of stock and index options on futures exchanges caused moderate movements in the market. The DAX barely changed on the weekend, giving up 0.15 percent to 23,639 points on Friday.
Scout24 (WKN: A12DM8) temporarily lost nearly four percent and closed 0.3 percent lower. JPMorgan analyst Marcus Diebel lowered his outlook for Scout24, and the reduced annual targets for the company are expected to lower the average market expectation for the 2025 operating result by five percent. Scout24's shares fell 5.9 percent on news of the acquisition of Spanish online real estate platforms Fotocasa and Habitaclia. However, next Monday, Scout24's stock will be promoted from the MDAX to the DAX.
Tire maker Continental plans to divest its plastics technology division, Contitech. Shares of Continental and auto supplier Aumovio rose 0.9 percent and 1.2 percent, respectively, on the second trading day after the spin-off. Several analysts have expressed positive views on Aumovio, with buy recommendations from Deutsche Bank and UBS.
Elsewhere, Befesa (WKN: A2H5Z1) gained 2.6% with UBS analyst Olivier Calvet providing tailwind, rating the recycling specialist's shares as a "buy". Stroer (WKN: 749399) lowered its outlook and saw its shares drop 0.3 percent.
The market was boosted recently by the euphoria on Wall Street following the Fed's first interest rate cut this year. However, these developments show that the German and US markets continue to be dynamic and full of opportunities for investors.
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