Graphic: AI generated

The rapid development of AI has triggered a veritable boom in data centers. Companies such as OpenAI and DeepSeek are driving this revolution and the demand for high-performance servers is growing exponentially.

However, the increase in computing power is also accompanied by massive energy consumption, an issue that is leading to global discussions about infrastructure, efficiency and future investments [1].

At the same time, the question arises as to whether there is currently an overinvestment in computing power. The Chinese AI company DeepSeek, for example, has presented a model that works more efficiently than previous large language models (LLMs).

Does this mean that we will soon need less computing power?

Or will the Jevons paradox occur instead, i.e. the effect that more efficient technologies actually increase overall consumption in the long term? [2, 3]

In this article, I will focus on the key developments in the data center sector, the growing demand for energy, regional characteristics, current challenges and potential investment opportunities.

As always, the article is intended to shed light on the background to current events, provide food for thought and give impetus. The stocks mentioned do not, of course, constitute investment advice.

🤖 Data centers: the foundation of the AI revolution

The growing global demand for AI-supported software and digital applications requires powerful data centers. Goldman Sachs analysts forecast that the global demand for power from data centers will increase by 50% by 2027 and by up to 165 % could increase [1].

This chart below forecasts the energy consumption of data centers (in terawatt hours) by 2030, distinguishing between AI- and non-AI-based applications in the US and the rest of the world. Total consumption is expected to rise to over 1,000 TWh by 2030 [4].

Our analysts expect data center power consumption to increase by more than 160% by 2030

Source: [4], primary: Masanet et al. (2020), Cisco, IEA, Goldman Sachs Research

This data shows how AI applications will massively increase energy consumption. The rapid increase in the area of "US AI" and "Rest of world AI" is particularly striking.

The three main reasons for this increase are

• Larger AI models:

New models such as GPT-5 or DeepSeek AI require more and more computing power. Training and operating these models requires trillions of calculations [1].

• Real-time AI applications:

Companies are integrating AI into numerous applications: from search engines to personalized financial and healthcare services.

• Cloud computing & data storage:

As digitalization progresses, the global demand for data storage and cloud services is increasing [1].

Which companies dominate the market?

On the demand side for data centers, large hyperscale cloud providers and other companies are building large language models (LLMs) that are capable of processing and understanding natural language. These models need to be trained on huge amounts of information using power-intensive processors [4].

On the supply side, hyperscale cloud companies, data center operators and asset managers are deploying large amounts of capital to build new high-capacity data centers.

These include, among others:

• Microsoft $MSFT (-1,57%) : Operator of Azure Cloud and partner of OpenAI
• Alphabet $GOOGL (-2,28%) : With Google Cloud and DeepMind
• Amazon $AMZN (-2,39%) : AWS, the world's leading cloud provider
• Meta $META (-1,11%) : Develops its own AI chips and continues to expand its infrastructure

In addition, specialized data center providers such as Equinix $EQIX (-1,8%) and Digital Realty $DLR (-3,48%) as they supply physical infrastructure to the hyperscalers [6].

According to Goldman Sachs Research, demand for data center infrastructure will increasingly outstrip supply in the coming years.

The utilization rate of existing data centers is expected to rise from around 85% in 2023 to more than 95% by the end of 2026. However, the situation is expected to ease from 2027 onwards as new data centers are commissioned and demand growth driven by AI slows down (see chart below) [1].

Goldman Sachs currently estimates that the global power consumption of the data center market is around 55 gigawatts (GW). This is made up of cloud computing workloads (54%), traditional workloads such as email or data storage (32%) and AI (14%) [1].

For the future, analysts predict that electricity demand will increase to 84 GW by 2027. The share of AI is expected to grow to 27%, while the cloud share will fall to 50% and traditional workloads to 23% [1].

By the end of 2030, around 122 gigawatts (GW) of data center capacity will be online.

At this point, I asked myself as a layman how the units mentioned so far are to be understood, in my first graphic I speak of 1,000 TWh of energy consumption of all data centers by 2030 and now here is talk of 122 GW of data center capacity? In order not to go completely beyond the scope of the article, I have added a section at the very end in case some of you also feel like a layman and want to put the "units" into perspective.

... and now on with the article...

One central problem remains:
Where does all the energy come from?

⚡️Energieversorgung: Can the grid keep up?

According to estimates by Goldman Sachs, more than 720 billion US dollars will have to be invested in expanding the power grid worldwide by 2030 in order to supply the new data centers with sufficient energy [1].

Europe in particular, where electricity consumption was expected to decline for many years, is experiencing a veritable "demand shock" [1].

Which energy sources supply data centers?

• Natural gas & battery storage:

Natural gas is seen as a realistic short-term solution to meet continuous demand. It serves as a bridging technology until renewable energy and storage solutions are further developed, as renewable energy is not available around the clock [4].

• Renewable energies:

Wind and solar energy could cover around 80 % of demand in the long term, provided that sufficient storage solutions are integrated [4].

In practice, solar plants run on average only about 6 hours per day, while wind power plants run on average 9 hours per day. There is also a daily volatility in the capacity of these sources, depending on the radiation of the sun and the strength of the wind [4].

The graph shows the fluctuations in capacity factors for wind and solar energy in the USA in 2023. The capacity factor indicates how efficiently an energy source utilizes its maximum output throughout the year.

• Wind energy (light blue line): The highest capacity factors occur in the winter months (Jan-March) and drop significantly in the summer months (Jun-Aug).

• Solar energy (dark blue line): Efficiency rises in the spring (Mar-May) and reaches its maximum in the summer months (Jun-Aug) before falling in the winter (Nov-Dec).

The graph illustrates that wind and solar energy can complement each other seasonally: While wind is more efficient in winter, solar energy provides the highest yields in summer. This shows how important a balanced energy mix is to ensure security of supply.

In addition to finding environmentally friendly energy sources to power data centers, technology providers can reduce emissions intensity through efficiency gains.

The following chart shows the development of the workload and energy consumption of data centers between 2015 and 2023. Although the workload almost tripled, energy consumption remained almost constant until 2019 thanks to efficiency gains. The efficiency gains then slowed down from 2020 onwards.

Source: [4], primary: Masanet et al. (2020), IEA, Cisco, Goldman Sachs Research

This chart supports the discussion on the Jevons paradox (see below). Efficiency gains could be offset or even exceeded in the long term by higher workloads and AI demand. This highlights the need to make data center energy sources more sustainable.

• Nuclear energy:

Meanwhile, governments are also becoming more supportive of nuclear energy on the whole. Switzerland is reconsidering the use of nuclear generators for its electricity supply, while nuclear energy enjoys bipartisan support in the US and the Australian opposition party has put forward plans to introduce nuclear reactors [4].

Participants at the COP28 conference at the end of 2023, an annual summit convened by the United Nations to combat climate change, agreed to triple global nuclear capacity by 2050 [4].

Nuclear energy is considered the ideal option for basic power supply as it provides a reliable and constant supply of energy.

As a result, more and more large tech companies such as Alphabet, Amazon and Microsoft are turning to small modular nuclear power plants (SMRs).

📊 Increasing efficiency & the Jevons paradox

With new technologies such as DeepSeek, AI could work more efficiently in the future. But does greater efficiency automatically mean that less computing power is required?

The Jevons paradox: More efficiency = more consumption?

The Jevons paradox describes the fact that increases in efficiency often do not lead to lower consumption, but to higher consumption overall.

-Example:

In the 19th century, more efficient steam engines did not lead to lower coal consumption; on the contrary, as the machines became cheaper and more versatile, coal consumption actually increased.

With cars: more fuel-efficient engines did not lead to less gasoline consumption, but to people driving more cars.

-Applied to AI:

As AI models become more efficient, the cost per computation decreases. This makes AI applications attractive in even more areas, which in turn leads to a higher overall demand for computing power.

🌎 Regional distribution and global expansion of data center infrastructure

Current distribution: Where are the data centers located today?

Today, most data centers are located in the Asia-Pacific region and North America. Well-known locations are:

North America:

- Northern Virginia

- San Francisco Bay Area

Asia: Beijing

- Beijing

- Shanghai

These regions are characterized by high computing power, intensive data traffic and strong demand from corporate campuses [1].

The chart also shows the historical development of data center capacity by region (North America, APAC, etc.) from 2017 to 2024. The figures illustrate how fast the infrastructure for the AI revolution is growing and underlines why the energy requirements of data centers are increasing so rapidly.

The increase in capacity from around 20 GW in 2017 to almost 60 GW in 2024 shows an enormous growth trend. This correlates directly with the increasing demand for AI applications and cloud computing.

How is supply growing?

Goldman Sachs Research estimates that global data center capacity will increase to around 122 GW by the end of 2030, as mentioned above. The share of hyperscalers and specialized operators will increase from the current 60% to around 70% [1].

• Asia-Pacific:

The largest expansion of data centers has been recorded here in the past ten years.

• North America:

The largest expansion of new data centers is planned in North America over the next five years.

📈 Investment opportunities: Some winners of the AI and data center revolution

US shares e.g.:

• Carrier Global $CARR (-1,06%) : Precise cooling technology and air conditioning for data centers
• Vertiv Holdings $VRT (-7,34%) : Specialist in cooling and power solutions specifically for data centers
• Brookfield Renewable Partners $BEP.UN : Leading provider of renewable energy (hydropower, solar, wind) - supply contracts (PPAs) with data centers
• ON Semiconductor $ON (-2,61%) : Leader in chips for energy efficiency and thermal management. Solutions reduce power consumption in data centers and support AI integration
• Texas Instrumentes $TXN (-0,26%) : Energy-saving semiconductor products used in data center servers
• Equinix $EQIX (-1,8%) : Specialized in data center infrastructure
• Digital Realty $DLR (-3,48%) : Provider of physical infrastructure for data centers
• IBM $IBM (-0,47%) : Quantum computing technologies that potentially consume less energy and development of energy-efficient AI solutions
• Arista Networks $ANET (-3,99%) : Specialist in high-speed networking products for data centers
• Nvidia $NVDA (-3,63%) : Leader in AI GPUs, Leader in AI training market. Best choice for large AI models and data center training
• AMD $AMD (-2,29%) Competing with Nvidia with its own AI chips, but better positioned in the AI interference market where energy efficiency and cost-effectiveness are key. The interference market will be the next most important market, perhaps even the more important one.
• Broadcom $AVGO (-3,16%) Profits from network solutions for data centers
• Microsoft $MSFT (-1,57%) Google $GOOGL (-2,28%) Amazon $AMZN (-2,39%) : The big hyperscalers investing heavily in AI and cloud

European stocks e.g.:

• Siemens Energy $ENR (-4,27%) Important role in modernizing power grids, integrating renewable energies and improving storage solutions for data center reliability
• Schneider Electric $SU (+0,5%) : Leader in the development of energy management and cooling technology for data centers - specialty in the automation of both systems.
• ASML $ASML (-0,72%) : Indispensable for modern chip production
• Infineon $IFX (-1,86%) and STMicroelectronics $STM (-2,24%) : Leading semiconductor companies with a focus on AI applications
• RWE $RWE (+1,08%) and Enel $ENEL (+1,01%) Utilities that are increasingly focusing on renewable energies for data centers

Japanese stocks e.g:

• Daikin Industries $6367 (+0,12%) World market leader in air conditioning and cooling, offers specialized cooling systems for data centers and AI-supported plant management systems to further increase efficiency
• Tokyo Electron $8035 (+0%) : Important supplier for semiconductor manufacturing
• Mitsubishi Heavy Industries $7011 (-3,2%) : Works on the development of new nuclear power plants to secure the energy supply

🧠 Conclusion: AI, data centers & energy as the trend of the century?

Although some analysts warn of possible overinvestment, the figures indicate that the demand for computing power and energy for AI data centers will continue to rise sharply.

• Efficiency gains from models such as DeepSeek or new chip technologies could reduce energy consumption per computer, but the Jevons paradox means that overall demand will increase because more efficient systems will be used more often.

The biggest winners are therefore:

• Semiconductor companies: They supply the AI chips needed.
• Data center operators: They build the necessary infrastructure.
• Energy suppliers: They ensure the energy supply for the AI revolution.

In the long term, these companies could be among the biggest beneficiaries of the coming decades.

👨🏽‍💻 How do I position myself?

Personally, I think I am well positioned with the NASDAQ 100 $CSNDX (-1,63%) (portfolio share of 23%), as the focus is on US technology and growth stocks. The ETF complements my All-World with a stronger weighting in innovative sectors such as AI and cloud computing.

In the near future, I will also take a closer look at Daikin Industrie $6367 (+0,12%) share in order to increase the exposure to Japan and the share price offers an entry point at first glance.

In addition, AMD $AMD (-2,29%) has also caught my attention, the reason being its positioning in the aforementioned interference market. Most of the capital is currently flowing into the expansion of new AI models. However, as soon as these become a "commodity" and everyone uses them, most of the capital will probably flow into the interference market (market for the application of AI models).

Furthermore, I have Siemens AG $SIE (-0,45%) with approx. 2.3% portfolio share (still growing to approx. 4%), which I also see as well positioned for the future for the following reasons (in the context of the article):

Network stability

• Develops technologies for intelligent power grids ("smart grids"), essential for integrating renewable energies into the supply of data centers.

Data center control

• Provides automation and monitoring systems that optimize the energy consumption and efficiency of data centers

Efficient building structure

• The "Smart Infrastructure" division supports data centers with energy-efficient solutions for lighting, air conditioning and building monitoring

Not directly cooling systems, but:

• offers technologies that increase the energy efficiency of cooling systems by optimizing energy flows and data analysis

What is your opinion❓

• Which companies do you have on your radar?
• Is there a threat of overinvestment or are we just at the beginning of a century revolution?

Thanks for reading! 🤝

...Said digression follows after the sources...

__________

Sources:

[1] https://www.goldmansachs.com/insights/articles/ai-to-drive-165-increase-in-data-center-power-demand-by-2030

[2] "The Coal Question"
http://digamo.free.fr/peart96.pdf

[3] https://de.m.wikipedia.org/wiki/Jevons-Paradoxon

[4] https://www.goldmansachs.com/insights/articles/is-nuclear-energy-the-answer-to-ai-data-centers-power-consumption

[5] https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai

[6] https://www.cbre.com/insights/reports/global-data-center-trends-2024

__________

🧭 Digression: on gigawatts and terawatt hours

In order to understand the relationship between the two figures, 122 GW (gigawatts) and 1,000 TWh (terawatt hours), it is important to clarify the units and their meaning:

• 122 GW (gigawatts):

Refers to the current average power capacity that data centers worldwide require to function. Power (measured in GW) describes the amount of energy consumed per second. This is therefore a snapshot of energy requirements.

• 1,000 TWh (terawatt hours):

This is an indication of energy consumption over a certain period of time, in this case one year. It describes how much energy is required in total in 12 months.

The forecast of 1,000 TWh is slightly below the value resulting from the calculation. The graph shows values slightly above 1,000 TWh; according to the calculation based on 122 GW of power capacity, energy consumption should be around 1,069 TWh.

Nevertheless, general reasons for deviations may be as follows:

• Efficiency improvements: Data centers could operate more efficiently through improved cooling, optimized hardware and software and thus consume less energy.
• Peak vs. average consumption: The figure of 122 GW could reflect peak demand, while the actual average annual demand is somewhat lower.
• Adjustments to the model: It is possible that the forecast of 1,000 TWh is conservative and does not take into account all additional loads or regional differences.

This shows how much the demand for data centers and energy will increase due to AI and digitalization by 2030

__________

Podcast episode 72 "Buy High. Sell Low."

Subscribe to the podcast to get nuclear power plants back on the grid in Germany. Inshallah.

00:00:00 20 power stocks for AI: Constellation Energy, Rolls-Royce, Schneider Electric, Siemens Energy, Cameco, Fluor Corporation, Vistra Corp, RWE, GDF Suez, Enel, Flowserve, Uniper, Crane Co, Quanta Services, MasTec, Legrand, Emerson Electric, Eaton Corporation, Uranium Energy, VanEck Uranium and Nuclear Technologies ETF A3D47K

39:30 Watchlist Max: Fluor Corporation, Schneider Electric, Quanta Services, MasTec, Legrand, Eaton Corporation

00:41:00 AMD

01:10:00 Apple

Spotify

https://open.spotify.com/episode/08XzNKA3nuiMlpcz9BYixB?si=qhG3ie7ETXm8O20VPEsp_w

YouTube

https://youtu.be/6olb6fp5AbQ

Apple Podcast

https://podcasts.apple.com/us/podcast/folge-72-20-stromaktien-f%C3%BCr-ki-amd-apple/id1695869891?i=1000684571374

#podcast
#spotify
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⬆️⬆️⬆️

- GOLDMAN raises the price target for SIEMENS ENERGY from EUR 56 to EUR 60. Buy. $ENR (-4,27%)

- BARCLAYS raises the target price for MERCEDES-BENZ from EUR 48.50 to EUR 50. Underweight. $MBG (-1,31%)

- JEFFERIES upgrades SMA SOLAR from Hold to Buy and raises target price from EUR 14 to EUR 20. $S92 (-2,27%)

- GOLDMAN raises the price target for DEUTSCHE BÖRSE from EUR 226 to EUR 231. Neutral. $DB1 (-0,57%)

- BOFA upgrades BBVA from Neutral to Buy and raises target price from EUR 11 to EUR 13. $BBVA (+0,33%)

- WARBURG RESEARCH upgrades FUCHS SE from Hold to Buy. Target price EUR 50. $FPE

- GOLDMAN raises the price target for FLATEXDEGIRO from EUR 17 to EUR 18. Buy. $FTK (+1,48%)

- BERENBERG raises the target price for IBERDROLA from EUR 12.30 to EUR 14. Hold. $IBE (-0,43%)

- JEFFERIES upgrades PVA TEPLA from Hold to Buy and raises target price from EUR 12 to EUR 19. $TPE (+0,71%)

- JEFFERIES raises the price target for FRIEDRICH VORWERK from EUR 23 to EUR 30. Hold. $VH2 (-3%)

- JEFFERIES raises the price target for ZEAL NETWORK from EUR 45 to EUR 58. Buy. $TIMA (-1,47%)

- JEFFERIES raises the price target for ADESSO from EUR 75 to EUR 85. Hold. $ADN1 (-0,77%)

- JEFFERIES upgrades NEL from Underperform to Hold. Target price NOK 3. $NEL (-3,27%)

⬇️⬇️⬇️

- BERENBERG lowers the price target for RWE from EUR 46.50 to EUR 42. Buy. $RWE (+1,08%)

- GOLDMAN lowers target price for EON from EUR 17.50 to EUR 17. Buy. $EOAN (+0,41%)

- HAUCK AUFHÄUSER IB downgrades AIXTRON from Buy to Hold and lowers target price from EUR 26.40 to EUR 13.80. $AIXA (-2,09%)

- METZLER lowers the price target for DWS from EUR 41 to EUR 40.50. Hold. $DWS (+0,52%)

- GOLDMAN lowers the price target for ASTRAZENECA from GBP 159.55 to GBP 155.58. Buy. $AZN (+1,03%)

- TD COWEN downgrades STMICRO to Hold. Target price EUR 24.50. $STM (-2,24%)

- JPMORGAN downgrades CONSTELLATION BRANDS to Neutral. Target price USD 203. $STZ (+3,04%)

- JEFFERIES lowers the price target for DOCMORRIS from CHF 65 to CHF 39. Buy. $DOCM (-1,46%)

- JEFFERIES lowers the price target for ATOSS SOFTWARE from EUR 112 to EUR 108. Hold. $AOF (+0,87%)

- JEFFERIES lowers the price target for JENOPTIK from EUR 34 to EUR 29. Buy. $JEN (-0,81%)

- JEFFERIES lowers the price target for KONTRON from EUR 29 to EUR 27. Buy. $KTN (-1,29%)

- JEFFERIES lowers the price target for SILTRONIC from EUR 95 to EUR 90. Buy. $WAF (+1,46%)

- JEFFERIES downgrades VERBIO from Buy to Hold and lowers target price from EUR 22 to EUR 11. $VBK (-2,71%)

- JEFFERIES downgrades SGL CARBON from Buy to Hold and lowers target price from EUR 9.50 to EUR 4.40. $SGL (+0,73%)

⬆️⬆️⬆️

- EXANE BNP raises the price target for ALLIANZ SE from EUR 271 to EUR 295. Underperform. $ALV (-0,14%)

- BARCLAYS raises the target price for AIRBUS from EUR 166 to EUR 200. Overweight. $AIR (-3,2%)

- UBS raises its price target for SAP from EUR 237 to EUR 283. Buy. $SAP (-1,87%)

- BERENBERG raises the price target for LVMH from EUR 695 to EUR 720. Buy. $MC (+0,4%)

- EXANE BNP raises the target price for MUNICH RE from EUR 550 to EUR 560. Outperform. $MUV2 (-0,6%)

- RBC raises the target price for SIEMENS from EUR 205 to EUR 225. Outperform. $SIE (-0,45%)

- CITIGROUP raises the price target for STELLANTIS from EUR 12.40 to EUR 13. Neutral. $STLA

- KEPLER CHEUVREUX raises the target price for DOUGLAS from 28.60 EUR to 29.90 EUR. Buy. $DOU (-1,98%)

- CITIGROUP raises the target price for DWS from EUR 43 to EUR 44.70. Buy. $DWS (+0,52%)

- CITIGROUP raises the price target for FRAPORT from EUR 62 to EUR 72. Buy. $FRA (+0,51%)

- UBS upgrades AMADEUS IT from Neutral to Buy and raises target price from EUR 67 to EUR 80. $AMS (-1,33%)

- DEUTSCHE BANK RESEARCH raises target price for PHILIPS from EUR 25 to EUR 26. Hold. $PHIA (+2,11%)

- DEUTSCHE BANK RESEARCH raises the target price for MAN GROUP from GBP 2.65 to GBP 2.75. Buy.

- GOLDMAN raises the target price for RIO TINTO from GBP 67 to GBP 73. Buy. $RIO (-0,51%)

- JEFFERIES raises the price target for SIEMENS ENERGY from EUR 31 to EUR 50. Hold. $ENR (-4,27%)

- RBC raises the target price for SCHNEIDER ELECTRIC from EUR 195 to EUR 210. $SU (+0,5%) Underperform.

- EXANE BNP upgrades HANNOVER RÜCK from Neutral to Outperform and raises target price from EUR 265 to EUR 285. $HNR1 (-0,02%)

⬇️⬇️⬇️

- DEUTSCHE BANK RESEARCH lowers the price target for NOVO NORDISK from DKK 1000 to DKK 900. Buy. $NOVO B (+5,32%)

- BOFA lowers the target price for RWE from EUR 44 to EUR 42. Buy. $RWE (+1,08%)

- JPMORGAN lowers the price target for NETFLIX from USD 1010 to USD 1000. Overweight. $NFLX (-1,73%)

- MORGAN STANLEY lowers the price target for SYMRISE from EUR 137 to EUR 130. Overweight. $SY1 (+0,2%)

- KEPLER CHEUVREUX lowers the target price for REDCARE PHARMACY from EUR 145 to EUR 138. Hold. $RDC (-1,39%)

- WARBURG RESEARCH lowers the target price for BECHTLE from EUR 51 to EUR 45. Buy. $BC8 (-0,42%)

- STIFEL downgrades WACKER CHEMIE from Buy to Hold. $WCH (-0,13%)

- RBC lowers the price target for DAIMLER TRUCK from EUR 55 to EUR 51. Outperform. $DTG (-1,07%)

I still don't have any electricity shares in my portfolio ☹️, although I find the energy sector, especially electrical energy, very exciting and promising. In view of the trend towards electromobility and global digitalization, this sector could offer enormous potential.

The only share I have had on my radar for a few months now is Terna, the leading Italian grid operator. The company operates one of the largest electricity transmission grids in Europe and is benefiting directly from the growing need for modern infrastructure and expansion. Despite this, I haven't yet made up my mind to get involved, perhaps because I'm still unsure whether now is the right time or whether there are more attractive alternatives? 😭

I think that investing in electricity shares would not only be an interesting addition to my portfolio, but also an opportunity to benefit from the growth of the energy sector in the long term. In addition to Terna, companies such as RWE, NextEra Energy, Siemens Energy or Brookfield Renewable Partners would also be exciting.

Has anyone taken a closer look at this topic? I am particularly interested in the power generators with the highest efficiency. I.e. away from the ESG hype. Which shares do you have on your radar? What could be interesting and promising for the future?

$TRN (-0,5%)

$RWE (+1,08%)

$NEE (+2,37%)

@Tenbagger2024

$ENR (-4,27%)

What do you think of $RWE (+1,08%) and $EVK (+1,07%) ?

Both shares have been beaten up properly, pay a good dividend and could also achieve a turnaround with the new German government (assuming the German economy makes it out of the hole).

I look forward to the comments and different opinions 😊

Analyst updates, 02.12.24:

⬆️⬆️⬆️

- EXANE BNP upgrades NOVO NORDISK to Outperform. Target price DKK 930. $NOVO B

- HSBC upgrades LVMH to Buy. Target price EUR 727. $MC (+0,4%)

- WARBURG RESEARCH raises target price for MTU from EUR 278 to EUR 297. Hold. $MTX (-3,41%)

- GOLDMAN raises the price target for VISA from USD 324 to USD 347. Buy $V (-0,16%)

- DEUTSCHE BANK RESEARCH upgrades BASF from Hold to Buy and raises price target from EUR 50 to EUR 55. $BAS (+1,69%)

- DEUTSCHE BANK RESEARCH upgrades BURBERRY from Hold to Buy and raises target price from GBP 8.60 to GBP 11.80. $BRBY (-4,28%)

- GOLDMAN raises the target price for AROUNDTOWN from EUR 2.90 to EUR 3.70. Buy. $AT1 (+0,28%)

- GOLDMAN downgrades TOAST from Buy to Neutral and raises target price from USD 34 to USD 45. $TOST (-5,58%)

- HSBC upgrades HERMES to Buy. Target price 2500 EUR. $RMS (+0,11%)

- MORGAN STANLEY upgrades ZEBRA TECH to Equal-Weight. Target price 400 USD. $ZBRA (-2,72%)

- JPMORGAN upgrades AIR LIQUIDE from Neutral to Overweight and raises target price from EUR 161 to EUR 195. $AI (+4,21%)

- JPMORGAN raises target price for PUMA SE from EUR 44 to EUR 47. Neutral. $PUM (+1,1%)

⬇️⬇️⬇️

- GOLDMAN lowers the price target for MASTERCARD from USD 563 to USD 557. Buy. $MA (-0,3%)

- WARBURG RESEARCH lowers the price target for AIXTRON from EUR 26 to EUR 24. Buy. $AIXA (-2,09%)

- METZLER lowers the price target for WACKER NEUSON from EUR 14.50 to EUR 14. Hold. $WAC (+0,59%)

- DEUTSCHE BANK RESEARCH downgrades K+S from Hold to Sell and lowers target price from EUR 9.75 to EUR 9.50. $SDF (+2,25%)

- BERENBERG lowers the price target for BP from GBP 4.70 to GBP 4.40. Hold. $BP. (-1,13%)

- RBC downgrades IBERDROLA from Outperform to Sector-Perform. Target price EUR 14 $IBE (-0,43%)

- RBC lowers the price target for RWE from EUR 52.50 to EUR 45.50. Outperform. $RWE (+1,08%)

- JPMORGAN lowers the target price for ORSTED from DKK 460 to DKK 430. Neutral. $ORSTED (-1,82%)

- JPMORGAN lowers the price target for ADIDAS from EUR 275 to EUR 266. Overweight. $ADS (-0,81%)

- JPMORGAN lowers the price target for LVMH from EUR 685 to EUR 650. Neutral. $MC (+0,4%)

- JPMORGAN lowers the price target for HUGO BOSS from EUR 43 to EUR 42. Neutral. $BOSS (+0,31%)

Analyst updates, 25.11.

⬆️⬆️⬆️

- MORGAN STANLEY upgrades ROBINHOOD to Overweight. Target price USD 55. $HOOD (-7,16%)

- BARCLAYS raises the price target for DEUTSCHE TELEKOM from EUR 37 to EUR 39.50. Overweight. $DTE (+0,67%)

- BERENBERG raises the target price for SIEMENS ENERGY from EUR 35 to EUR 70. Buy. $ENR (-4,27%)

- UBS raises the target price for RHEINMETALL from EUR 570 to EUR 630. Neutral. $RHM (-1,89%)

- BARCLAYS raises the price target for 1&1 from EUR 17 to EUR 20. Equal-Weight. $1U1 (+1,37%)

- DEUTSCHE BANK RESEARCH upgrades VESTAS from Hold to Buy. $VWS (-1,47%)

- DEUTSCHE BANK RESEARCH raises the price target for VONOVIA from EUR 33 to EUR 38. Buy. $VNA (+0,26%)

- DEUTSCHE BANK RESEARCH raises the price target for TAG IMMOBILIEN from EUR 16 to EUR 18. Buy. $TEG (-0,85%)

- DEUTSCHE BANK RESEARCH upgrades AROUNDTOWN from Sell to Hold. Target price EUR 2.80. $AT1 (+0,28%)

- DEUTSCHE BANK RESEARCH raises the price target for LEG IMMOBILIEN from EUR 90 to EUR 105. Buy. $LEG (-0,46%)

- DEUTSCHE BANK RESEARCH upgrades DEUTSCHE WOHNEN from Hold to Buy and raises target price from EUR 19 to EUR 28. $DWNI (-0,22%)

- STIFEL raises the price target for NOVARTIS from CHF 106 to CHF 109. Hold. $NUVN

- DEUTSCHE BANK RESEARCH upgrades JD SPORTS FASHION from Sell to Hold. $JD. (-1,25%)

- DEUTSCHE BANK RESEARCH raises the price target for ALSTOM from EUR 22 to EUR 25. Buy. $ALO (-2,19%)

- MORGAN STANLEY raises the price target for DEUTSCHE BÖRSE from EUR 213 to EUR 232. Equal-Weight. $DB1 (-0,57%)

- KEPLER CHEUVREUX raises the target price for ECKERT & ZIEGLER from 57.30 EUR to 60.30 EUR. Buy. $EUZ (-2,2%)

- BARCLAYS raises the target price for UNITED INTERNET from EUR 23 to EUR 26. Equal-Weight. $UTDI (+0,66%)

- JEFFERIES raises the price target for HEIDELBERG MATERIALS from 142.10 EUR to 145.50 EUR. Buy. $HEI (+0,51%)

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- DEUTSCHE BANK RESEARCH lowers the price target for KION from EUR 55 to EUR 50. Buy. $KGX (-0,36%)

- DEUTSCHE BANK RESEARCH lowers the price target for CTS EVENTIM from EUR 114 to EUR 106. Buy. $EVD (+0,29%)

- GOLDMAN downgrades ORSTED from Buy to Neutral and lowers target price from DKK 520 to DKK 445. $ORSTED (-1,82%)

- DEUTSCHE BANK RESEARCH lowers the price target for H&M from SEK 200 to SEK 190. Buy. $HM B (+0,62%)

- MORGAN STANLEY lowers the price target for MERCK KGAA from EUR 200 to EUR 190. Overweight. $MRK (+2,28%)

- BARCLAYS lowers the target price for THYSSENKRUPP from EUR 4.40 to EUR 4. Underweight. $TKA (+0,54%)

- MORGAN STANLEY downgrades ING to Equal-Weight. Target price EUR 17.50. $ING (-0,3%)

- JPMORGAN lowers target price for RWE from EUR 48 to EUR 47.50. Overweight. $RWE (+1,08%)

Analyst updates, 22.11.

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- WARBURG RESEARCH raises the price target for SYMRISE from EUR 115 to EUR 116. Hold. $SY1 (+0,2%)

- HAUCK AUFHÄUSER IB upgrades SECUNET from Hold to Buy and raises target price from EUR 102 to EUR 123. $YSN (-1,34%)

- CITIGROUP raises the price target for ALSTOM from EUR 22 to EUR 26. Buy. $ALO (-2,19%)

- BERENBERG upgrades BRENNTAG from Hold to Buy. Target price EUR 76. $BNR (+0,43%)

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- WARBURG RESEARCH lowers the price target for PROSIEBENSAT.1 from EUR 8 to EUR 6.50. Hold. $PSM (+11,02%)

- WARBURG RESEARCH lowers the price target for RTL from EUR 40 to EUR 34. Buy. $RTLL (+0,64%)

- LBBW lowers the price target for LANXESS from EUR 29 to EUR 28. Buy. $LXS (+0,14%)

- HAUCK AUFHÄUSER IB lowers the price target for CTS EVENTIM from EUR 107 to EUR 105. Buy. $EVD (+0,29%)

- HAUCK AUFHÄUSER IB lowers the price target for BEFESA from EUR 38 to EUR 35. Buy. $BFSA (-1,45%)

- BERENBERG lowers the target price for RENK from EUR 35 to EUR 33. Buy. $DE000RENK730 (-0,91%)

- UBS lowers target price for RWE from EUR 49 to EUR 45. Buy. $RWE (+1,08%)

Bet on a CDU election victory in Germany

Well, it is foreseeable that the sceptres in our country will soon be realigned again. In the course of this, the losers ($MMK (-1,26%) ) can be replaced by potential winners.

In this context, the shaken energy companies in particular should have more lucrative prospects again thanks to the influence of the lobby. For this I have chosen RWE $RWE (+1,08%) for this.

Here are the reasons:

• In the wake of the shaken economic situation, particularly due to high energy prices (especially grid fees), there should probably be relief for large-scale industry in order to avoid further migration.
• The energy transition should no longer be seen as primarily necessary. It is therefore logical to conclude that the coal phase-out should be called into question once again in order to temporarily secure jobs and avoid overburdening lignite regions and the federal budget for restructuring programs.
• Furthermore, a potential government is currently showing little ambition for a possible return to nuclear energy, as a result of which coal and gas energy sources will logically continue to be of essential importance for the business location, which is likely to be in the interests of the lobby.
• In addition to this, RWE is showing particular ambition in the restructuring of the business area, which can therefore be seen from the fact that the operating margin is growing massively as renewable energy sources increase.
• The expansion into markets outside Germany and the EU is aggressive, which should allow them to benefit massively from various national subsidies.

In general, the prospects on the energy market for suppliers/producers are likely to improve again in the future as the Russia-Ukraine conflict eases, which in turn could make cheap raw material imports from Russia a reality again.

State shareholdings for potential loss-making transactions by corporations are also deeply rooted in the CV of the Christian Democrats, which is why the loss potential is likely to be very much in line with expectations.

Rising share prices with a target of €40-45/share and rising dividends are a pretty safe bet, in my personal opinion. (Tranche 1/3)