Deutsche Pfandbriefbank cuts forecast - shares collapse | Analysis 2023

Deutsche Pfandbriefbank cuts forecast - shares collapse | Analysis 2023

According to a report by stock3.com, Deutsche Pfandbriefbank is adjusting its forecast for 2023 downwards. This has led to a disappointed reaction from shareholders selling their shares.

Deutsche Pfandbriefbank has to withdraw its forecast for the current year due to a weaker market for commercial real estate. The company announced that risk provisions had to be significantly increased due to the difficult market conditions. The risk provision result for the first nine months of the year amounts to -104 million euros, compared to -38 million euros in the previous year. This has a significant impact on the pre-tax result, which is now only EUR 91 million, compared to EUR 159 million in the previous year. The previous forecast for pre-tax earnings for the current financial year was EUR 170-200 million, but is now EUR 90 to 110 million.

In response to this news, Deutsche Pfandbriefbank's share price collapsed by a good 13% and fell to a new low for the year. The price is currently far from its 2022 high. Current chart analysis suggests that support can be found at EUR 5.10 and initial resistance at EUR 6.75.

Overall, these developments suggest that Deutsche Pfandbriefbank is facing considerable difficulties. Although temporary recoveries are possible, caution is still required and there is no sign of a bottom forming yet.

This negative news is also expected to have an impact on the market, particularly in the commercial real estate financing space, and on investor confidence in the company. Shareholders are already reacting disappointedly to the adjustment of the forecast and are selling their shares. This could cause other investors to also lose confidence in the company and sell their shares, which could lead to a further decline in the share price in the long term.