DAX: DE40 extends upward momentum; Aurubis surges 14%📈Puma and Continental gain after recommendations change

DAX (DE40) futures extend yesterday's upward session and 'land' at new highs. Sentiment in the European stock market is very solid today, following yesterday's excellent session in the U.S., where the Nasdaq 100 gained more than 1.2%. Rheinmetall (RHM.DE) gains another 1% and is trading on the ATH at €660 per share

• Steelmaker and leading German naval supplier Thyssenkrupp (TKA.DE) gains more than 3% after stronger-than-forecast German industrial data; m/m growth in factory orders fell less than expected (-1.5% vs. 2% forecasts); y/y growth was 5.7% vs. 1.9% expectations
• Shares of copper products manufacturer Aurubis (NDE.DE) gain more than 14% as it raised its dividend; Continental gains after Bernstein recommendation; Puma benefits from Oddo BHF recommendation
• On the German trading floor, SCHOTT Pharma, Uniper and Hypoport lose 2%; Porsche (P911.DE) and Volkswagen (VOW1.DE) shares retreat nearly 1%.

DE40 chart (D1 interval)

Source: xStation5

Increases in shares of Commerzbank, Zalando, Deutsche Börse and Continental dominate the DAX today; Rheinmetall and MTU Aero Engines are doing well. SAP and BASF shares are slightly weaker.

Source: Bloomberg Financial L.P.

Aurubis, Contiental and Puma on upward wave

Shares of Europe's largest copper processor, Aurubis, benefited from lower energy costs and higher raw material prices, although the market environment was characterized by volatility and high levels of uncertainty. Pre-tax profit rose 19% year-on-year to €413 million in 2023/24, and the company raised its dividend by €0.10 per share, to €1.40. The company is targeting profits of €300 million to €400 million next year, but the market had already 'priced in' their likely decline, due to the deteriorating price outlook in supply markets and the cost of launching more projects, the company cited in September.

Aurubis chart (NDA.DE)

Source: xStation5

Shares of tire and auto parts maker Continental (CON.DE) gained after Bernstein raised his rating on the company's business to 'market perform'; however, he did not specify a target price for the stock.

• Currently, analysts expect the company's business to be in solid shape next year, especially with strong exposure to the high-margin European parts market, which is returning to growth momentum; with an optimistic 'spin-off' of its automotive parts unit.
• Analysts also pointed out that Bridgestone and Michelin could benefit from trends next year. They took a negative view of Pirelli, changing their recommendation to 'underperform,' pointing to tariffs not reflected in the valuation, weaker orders from the U.S. and the Italian government investigating the company's main shareholder which is likely to keep the stock in uncertainty until March 2025

Continental's shares are gaining nearly 2% today and continue to rise above the downtrend line, and the average EMA200 (red line).

Source: xStation5

Analysts at Oddo BHF raised their recommendation for Puma (PUM.DE) shares to €60 per share. The sportswear and footwear manufacturer's shares are up nearly 5% today and have broken out above the EMA200 (red line), potentially reversing the downtrend.

Source: xStation5