DE40: DAX gains almost 1% amid automotive stocks surging after BofA report 🔎

DAX posts solid gains on Thursday ahead of eurozone retail sales data and U.S. jobless claims. Today’s rise on the German market is led by car manufacturers — from Volkswagen and BMW to Mercedes and Porsche AG. The sector was supported by a ‘buy’ recommendation from Bank of America for Porsche SE, along with a broad, optimistic outlook for European automotive companies, which the bank considers attractively valued as markets had expected “total disruption” to growth due to new emissions standards.

• Bank of America removed Infineon from the ‘Europe 1’ list; Dutch semiconductor giant ASML returned to the list.
• Deutsche Bank downgraded Siemens Healthineers to ‘hold’ with a target price of EUR 46 per share.
• Goldman Sachs upgraded Commerzbank to ‘neutral’ with a target price of EUR 35.5 per share and downgraded Grand City Properties to ‘neutral’ with a target of EUR 11.5 per share.

The DAX (DE40) futures contract is trading between the 200-day (red line) and 50-day moving averages (orange line). Recent sessions have brought gains supported by the rebound on Wall Street, where Salesforce (CRM.US) shares are rising pre-market after earnings.

Source: xStation5

Bank of America backs European automotive companies

Bank of America analysts expressed a positive view on the growth outlook for European carmakers and issued a ‘buy’ rating for Porsche SE. They highlighted regulatory support, a more relaxed future approach to emissions standards, and the postponement of the combustion-engine ban — originally expected in 2040 — to a more distant future.

According to analysts, beneficiaries include Ferrari, Aumovio, and Continental. They noted that Porsche SE deserves attention because it offers exposure to both Volkswagen and Porsche AG shares at a significant discount. Analysts also upgraded Mercedes to ‘neutral’, saying the worst is likely behind the company, and raised Renault to ‘buy’ from ‘neutral’, suggesting the firm still represents deep value at its currently low valuation.

Source: xStation5

Rheinmetall attempts a rebound

One of the major topics on the German stock market remains the sharp decline in Rheinmetall shares, which—despite recovering slightly in recent days—are still trading 25% below their highs. The U.S. delegation returned from the Kremlin with no concrete progress, but on Thursday Trump is expected to meet with Ukraine’s chief negotiator, Rustem Umerov. Moscow has stated that it is incorrect to say that the U.S.-Ukraine proposal was rejected by Putin.

Financial results for the first three quarters of 2025:

• Sales: EUR 7.5 billion, up 20% year-over-year

• Defense segment sales: +28%, driven by vehicle systems and ammunition

• Operating profit: EUR 835 million, up 18% from EUR 705 million a year earlier

• Operating margin: 11.1% at Group level; 13.6% in the defense segment

• Order backlog: EUR 64 billion, up from EUR 52 billion a year earlier

• Order intake: EUR 18 billion, below last year’s level due to delays in the German budget and postponed orders

• Operating free cash flow: approx. EUR 813 million, weighed down by high capex, inventory growth, and delayed German orders

The management board reaffirmed its 2025 guidance, expecting full-year sales growth of 25–30% (vs. EUR 9.75 billion in 2024) and an operating margin of around 15.5% (vs. 15.2% in 2024).

Rheinmetall (D1 interval)

The company’s shares are trading below two key medium-term moving averages: EMA50 and EMA200.

Source: xStation5

Siemens Healthineers shares (SHL.DE)

Source: xStation5