Metzler sees challenging start to 2025 for German stocks amid economic, political risks
** Metzler Capital Markets sees challenging starting conditions into 2025 for Germany, deepened by Chancellor Olaf Scholz's government collapse earlier this month, and forecasts economic growth to accelerate only moderately in 2025 after a potential stagnation or slight decline this year
** The brokerage flags risks to German exports from tariff hike plans by incoming U.S. President Donald Trump and an increasingly smaller China role
** It deems consensus expectations for profits of German blue-chip index DAX .GDAXI to rise around 12% for 2025 "too optimistic"
** It expects DAX to rise by at least 7% in 2025 compared to 2024, with positive earnings growth depending on the future German government's will to take action as well as decisions at EU level, in addition to global growth trends
** It says shares in cyclically sensitive companies as well as consumer companies may gain ground towards H2 2025, while it expects shares of beneficiaries of a "misguided subsidy policy in the vaguely defined area of 'green transformation'" to suffer
** It notes the small- and mid-cap segment now looks attractive again
** Within the DAX index, it deems the following stocks as "promising": Adidas ADSGn.DE, Allianz ALVG.DE, BMW BMWG.DE, Commerzbank CBKG.DE, Deutsche Boerse DB1Gn.DE, Heidelberg Materials HEIG.DE, RWE RWEG.DE, SAP SAPG.DE
Reporting by Linda Pasquini
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