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  • Deutsche Post AG shares: 15,9% growth potential following the increase in profits

Deutsche Post AG shares: 15,9% growth potential following the increase in profits

Company name: Deutsche Post AG 
Ticker: DPW.EU (Xetra)
Current Price: €34,94
Target Price: €40,5
Yield potential: 15,9%
Dividend yield: 3% 

Deutsche Post AG Profile

Deutsche Post AG is a German company and one of the largest package delivery companies in the world. The core activity of the company is cargo and parcel delivery. The post department delivers 61 million letters to Germany daily which makes Deutsche Post AG the largest company in Europe in its domain. The company has its express delivery branches in more than 220 countries.

What's the idea?

To profit off the unexpected growth and positive forecasts of the company during the global crisis over COVID-19.

Buy Deutsche Post AG shares >>

Why do we like Deutsche Post AG?

Reason 1. Profit growth in the second quarter amid the pandemic

According to the CEO the company has increased its profit in the second quarter of 2020 due to its services. Preliminary figures indicate a 16% increase in pre-tax profit – up to €890 million compared to €769 a year earlier. Previously, the executive management of the company was fearful of the pandemic disrupting the supply chain and leading to additional costs. But since the end of March, the company has recorded an increase in shipping operations. Deutsche Post AG also said that its investment plans for 2020-2022 remain unchanged – from €8,5 billion to €9,5 billion. The report is expected on August 5.

Reason 2. Deutsche Bank chooses the company as its favorite

The preliminary results for the 2nd quarter have shown a rapid recovery of the company after the pandemic. The Deutsche Bank analysts have increased the target price from €36 to €40. Also, the EBIT margin forecast has been increased. In their analytical note, the analysts confirmed the recommendation to “buy” and they recommend Deutsche Post as one of the best solutions in the industry.

Reason 3. Latest updates from investment houses

On July 23, analysts at Barclays confirmed their target price of €37. High target prices of €40 were given by Berenberg and Deutsche Bank. Bankhaus Metzler has given €40,95 and Exane BNP has given €41. The company pays dividends twice a year and has a dividend yield of 3,29%.

Reason 4. Technical picture

The local resistance level is at €36. In case of a breakout a rise to €36,7 is possible. For a medium-term growth it is important to break out the €36,7 level, and in case of a breakout of this level a further rise to €41-42 is possible.

How to use the idea?

  1. Buy shares with BAS ticker ticker symbol DPW after the breakout of €36,7.
  2. Allocate not more than 3-4% of your limit for mid-term transactions per position.
  3. Lock in your position when shares reach the price price reaches €40,5.

How to buy Deutsche Post AG shares?

This can be done in two ways:

Through Freedom24 web-based trading platform. In the “Web terminal” section search for DPW.EU (the ticker symbol of Deutsche Post AG on Xetra) and select Deutsche Post AG in the search results. Then open a security session, select the required number of shares and click the “Place a purchase order” button.

Through Freedom 24 app for iPhone. Click the search icon in the upper right corner of the “Quotes” window. In the search box that appears type in DPW.EU (the ticker symbol of Deutsche Post AG on Xetra) and select Deutsche Post AG in the search results. The Deutsche Post AG will be added to marketwatch. Click on it and select the “Order” tab in the card that opens. Specify the required number of shares and click the “Place a buy order” button.

If you do not have an account, open it right now remotely in 10 minutes. You need to fill out a short questionnaire and pass a verification process. 

Invest in Deutsche Post shares – do not miss out on the growth following the excellent performance of the company during the crisis!

Buy Deutsche Post AG shares >>

*Additional information is available upon request. Investment in securities and other financial instruments always involves risks of capital loss. The Client should make himself aware at his own accord, including to familiarize himself with Risk Disclosure Notice. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Commissions, fees or other charges can diminish financial returns. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and do not constitute an investment advice service. The recipient of this report must make their own independent decisions regarding any securities or financial instruments mentioned herein. Information has been obtained from sources believed to be reliable by Freedom Finance Cyprus Ltd or its affiliates and/or subsidiaries (collectively Freedom Finance). Freedom Finance do not warrant its completeness or accuracy except with respect to any disclosures relative to the Freedom Finance and/or its affiliates and the analyst’s involvement with the issuer that is the subject of the research. All pricing is indicative as of the close of market for the securities discussed, unless otherwise stated.