DAX index analysis after mixed Bayer, Deutsche Telekom earnings


European stock indices have done well in the past few months as the fear of a recession in the region have abated. In Germany, the DAX index jumped to €16,000, the highest point since January 2022. It is nearing its all-time high after rising by more than 33% from the lowest level this year.

Bayer and Deutsche Telekom earnings

Bayer and Deutsche Telekom will be the top companies to watch on Thursday after they published mixed financial results. Deutsche Telekom had a strong first quarter as its net revenue rose to €27.8 billion while its net debt dropped to 2.9x of EBITDA. 

The company had several important events in the first quarter. For example, it received €10.7 billion from the sale of its tower business while the company increased its stake in T-Mobile. As a result, it boosted its forward guidance for its business. 

Deutsche Telekom share price has done well having risen by 53% from the lowest point in 2022. In addition to its diversified business, the company is growing its dividends. It boosted its payouts by 9% in 2022. 

Bayer, on the other hand, published mixed results as it expressed concerns about its performance. The company’s revenue dropped by 1.7% to €14.39 billion while its EBITDA dropped by 14% to €4.47 billion. Its net income dropped by 33% to €3.3 billion. The company expects its results for the year will be at the lower side of the guidance. In its statement, the firm said:

“For the remainder of the year we see potential risks mainly arising from the significantly reduced market price expectations for our glyphosate-based products within our Crop Science Division. Overall, we, therefore, expect target attainment to come in at the lower end of our guidance.”

DAX index forecast

DAX chart by TradingView

The daily chart shows that the DAX index has been in a strong bullish trend in the past few months. It has crossed the key resistance point at €15,750, the highest point on March 6. The shares have moved above the 50-day exponential moving average. It is approaching the key resistance point at €16,290, the highest point on January 2022.

Therefore, the index will likely continue rising as buyers target this resistance point. A break above that resistance point will push it to the psychological level of €16,500.

The post DAX index analysis after mixed Bayer, Deutsche Telekom earnings appeared first on Invezz.

You may also like