- Positive sentiment in European markets; DE40 gains more than 0.6%
- German utility giant, energy supplier Uniper (UN0.DE) rebounds more than 7% from historic lows amid lifting profit forecasts for FY 2024
- German stock market awaits prelim inflation data for November
The DAX is awaiting the release of preliminary CPI data for November, scheduled for 1 PM GMT; in the absence of a trading session on Wall Street due to the Thanksgiving holiday in the US. Investors expect Germany’s annual CPI to come in at 2.3% y/y, compared to 2% in October. Gaining on the German trading floor are the shares of energy company Uniper, auto supplier Daimler Truck, auto parts manufacturer ElringKlinger, airline Lufthansa and semiconductor manufacturer SÜSS MicroTec.
Volatility in the European market today indicates a significant bullish advantage. More than 5% is gained by the shares of French Airbus. Swiss timepiece maker Swatch Group deepens declines. Source: xStation5
DE40 (H1 and D1 interval)
Source: xStation5 
Source: xStation5
Uniper (UN0.DE) rebounds from historic lows
Uniper raised its financial results forecast for 2024 compared to earlier assumptions, although they remain well below the previous year’s results. The company has ended long-running litigation. The resolution of the disputes results in the release of provisions established for this purpose; the release will be included in the fourth quarter results for fiscal 2024.
- Uniper now expects improved financial results for the full year 2024, which prompted the company to raise its financial forecast for the year. Uniper is now forecasting adjusted EBITDA in the range of €2.5 billion to €2.8 billion (previous year: €7.164 billion), compared to an earlier forecast of €1.9 billion to €2.4 billion.
- Adjusted net income in the range of 1.5 billion to 1.8 billion euros for the full fiscal year 2024 (previous year: 4.432 billion euros). Such a result would imply a P/E ratio of about 10. The company recently backed away from its planned €8 billion investment in green energy by 2030, citing a lack of demand in the hydrogen market.
Uniper was saved by Germany’s support of more than €13 billion ($13.7 billion) in compensation for losses related to gas volumes not delivered by Gazprom from mid-2022 to summer 2024. It is unclear whether the German government will ever support the company again in the future. It is also uncertain at this point whether Uniper will hand over the ‘promised’ €2.5 billion to the German government in early 2025; the company makes quarterly decisions on the matter. Today’s rise in Uniper’s shares is virtually imperceptible on the long-term scale.
Source: xStation5
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