Expanded Profit Prospects for DAX: Positive Surprises from Commerzbank and Vonovia
The German stock market showed a mixed performance in the recent trading session, with the DAX closing 0.33% higher at 23,924 points on Wednesday. The index, which includes some of Germany's largest companies, is nearing its peak of 24,639 points, reached in early July, thanks largely to technical factors, according to analyst Jürgen Molnar of Robomarkets.
One of the standout performers in the DAX is Commerzbank (WKN: CBK100), which experienced a stock gain of over 1%, despite analysts from Keeffe, Bruyette & Woods raising concerns about cost development and equity ratio. The bank's strong quarterly results and increased 2025 profit target have buoyed investor confidence.
However, not all stories are positive. Zalando (WKN: ZAL111) is experiencing a significant stock drop of 8.4% due to disappointing numbers in its skin care division. Despite this, the current market outlook for Zalando on the German stock exchange is positive, with analysts upgrading its rating to "Buy" and Zalando raising its full-year 2025 guidance following the acquisition of About You. Zalando reported a 7.3% revenue increase and expects gross merchandise volume (GMV) of EUR 17.2-17.6 billion and revenue between EUR 12.1-12.4 billion in 2025, alongside a projected adjusted EBIT of EUR 550-600 million. The share price recently experienced a slight decline, trading around €23.29, which is below some analyst target prices like EUR 46.50, reflecting potential upside.
Elsewhere, Beiersdorf (WKN: 520000) has lowered its revenue guidance and is seeing a stock decrease. Meanwhile, Vonovia (WKN: A1ML7J) had a strong first half and raised its annual targets, causing its stock to rise 3.5% to the top of the DAX.
The uncertain future trade policies and weak US economic data are fueling hopes of imminent interest rate cuts, according to Molnar, which could contribute to further growth in the German stock market. However, the market remains uncertain, with investors at the Frankfurt Stock Exchange torn at the start of the month.
Bayer's stock dropped nearly 10% due to cited currency risks and ongoing US legal disputes. No updated specific outlook was found for Beiersdorf and Vonovia in the current data, suggesting stable but slightly declining German stock indices as of August 2025.
The MDAX, which includes smaller and medium-sized companies, also gained 0.45% to reach 30,964 points on Wednesday. The overall German stock market index (DE40), where these companies are listed, has seen minor recent declines, trading just above 24,000 points but remains significantly higher than a year ago, indicating somewhat mixed but stable market conditions for German stocks in general.
[1] Source for Zalando's Q2 2025 results and 2025 guidance [2] Source for the current state of the German stock market indices [3] Source for analyst buy recommendations and target prices for Zalando [4] Source for Zalando's acquisition of About You and its impact on the company's outlook
Conflict of Interest Disclosure: The board and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has entered into direct and indirect positions in the following financial instruments mentioned in the publication: Bayer NA, Commerzbank AG.
- The strong performance of Commerzbank (WKN: CBK100) in the DAX, despite concerns about cost development and equity ratio, indicates a potential investing opportunity in the banking sector of the German business market, given its increased profit target and positive quarterly results.
- The mixed performance of Zalando (WKN: ZAL111), with a significant stock drop in its skin care division but a positive current market outlook due to upgraded analyst ratings, increased revenue, and full-year 2025 guidance, suggests a volatile investing environment for this online retailer in the German stock market.
