European financial market infrastructure companies are a good place to be invested into 2025, suggests Deutsche Bank.
Euronext remains the German bank’s preferred pick in the space, with ongoing rerating potential as the group solidifies its higher growth track record, followed by Deutsche Boerse (underlying growth intact, net interest income headwind became smaller).
London Stock Exchange Group PLC (LSE:LSEG) is looking toppy short term, adds the bank, after EPS downgrades throughout 2024 and with the rerating largely in line with US peers now.
Ahead of results, Deutsche Bank says it is upgrading outer years estimates at LSEG (for currencies USDGBP and Tradeweb) and Deutsche Boerse (net interest income due to margin and volume) meaningfully, whereas Euronext forecasts remained largely stable.
Hold is the rating for LSEG, though the bank’s target rises to 11,500p from 10,000p.