Deutsche Bank announced on Thursday that it had downgraded its recommendation on Euronext from "buy" to "hold", with a price target lowered from 103 to 69 euros due to the lack of catalysts around the stock.

In a note sent to its clients, the financial intermediary acknowledges that the stock exchange operator has done a "good job" over the past ten years in developing and diversifying its activities.

Nevertheless, it points out that the cash equity markets and related businesses (clearing and settlement) continue to represent a major part of the Group's business, with the associated volatility in terms of results.

In view of the current sluggish market environment, DB is forecasting a further quarter of negative growth in the second quarter of 2023, in terms of both revenues and earnings.

In view of this unfavorable dynamic, the analyst prefers to downgrade his recommendation on the stock, despite a valuation deemed "cheap" compared to its peers, with a PER of 11.5x by 2024.

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