Deutsche Börse: Top investment with a lot of potential in 2024 - A financial expert explains

Deutsche Börse: Top investment with a lot of potential in 2024 - A financial expert explains

According to a report by www.aktienwelt360.de, Deutsche Börse (WKN: 581005) is considering becoming a top investment in 2024. Deutsche Börse shares started 2024 with new all-time highs and showed an expected P/E ratio of 17.7. It also shows convincing returns, with an operating margin of over 40% and a return on equity of almost 20%.

According to current quarterly figures, Deutsche Börse recorded a pleasing 9% increase in net revenue in the third quarter of 2023. This growth was primarily driven by structural growth in the repo business of the Trading & Clearing segment and contract renewals in the Data & Analytics segment. The recently completed acquisition of SimCorp is expected to strengthen its data, analytics and software businesses and lead to a rethink in valuation, opening up new growth prospects.

Due to the positive business development and the forecast for 2023, Deutsche Börse is expected to significantly exceed its original forecast. SimCorp's expected revenue contributions in the fourth quarter of 2023 could result in revenue growth of at least 16%.

Based on these facts, it can be said that Deutsche Börse has a promising future from an operational perspective. The expected forecast exceedance and the possible increase in the dividend strengthen the positive image of the share and make it an attractive investment for 2024.

Their value is significantly higher than the net sales of 4.3 billion euros for the 2022 financial year and would correspond to sales growth of at least 16%, which is also above the growth rate of the previous year. So there is a lot that underpins shareholder euphoria from an operational perspective. An increase in the dividend also seems realistic to me. Last year it was 3.60 euros.

The dividend is solid, but for a growth stock it is more important that sales and earnings increase significantly. And this is where Deutsche Börse shows itself at its best, as the latest quarterly figures and the latest annual reports show. For me, Deutsche Börse shares remain a real top favorite for 2024.