Latest news for KSB SE & Co (OTC:KSVRF) Stock

KSB SE & Co KGaA is a German-based company. It is a provider of pumps, valves, and related services. Its operations are carried out in three segments namely Pumps, Valves, and KSB SupremeServ Segment comprises the spare parts business for pumps and valves. A majority part of its sales and revenue is comes from the Pumps segment. The Pumps segment includes single and multistage pumps, submersible pumps, and associated control and drives systems. The company's pumps are used in various applications where fluids need to be transported as well as in other applications which belong to industry, building services, water engineering, wastewater engineering, energy supply, and mining.

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KSVRF

Rate Cut Optimism Is Not Enough To Turn European Economy Around

KSB SE & CO KGAA PREF RTS by KSB SE & CO.

KSB SE & Co KGaA

<a href="https://www.globenewswire.com/Tracker?data=MvoSLa0RdJ-p44BY3TZ25mYKru5_318w0rZMXr5aH6I0DqWabfIEqtY-P3Do4r-ha3Ixwnyb-TlA3geaSdd-igUkFxl2N0FLfz6qXlXQEgw=">Hyperscale Data, Inc.</a>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPUS#NYSE">GPUS</a>), a diversified holding company ("Hyperscale Data" or the "Company"), today announced the completion of a $50 million preferred equity investment, whereby the Company sold that dollar amount through the issuance to Ault &amp; Company, Inc. ("Ault and Company") of 50,000 shares of Series C Convertible Preferred Stock (the "Series C Shares").&nbsp;Ault &amp; Company&nbsp;has invested $50 million through multiple closings over the past thirteen (13) months. This strategic influx of capital has enabled Hyperscale Data to accelerate its growth trajectory, enhance its technological offerings, and execute its business expansion plans more effectively, with a focus on becoming a pure AI data center company. The Company would like to remind its stockholders that on March 25, 2024, the Company and Ault and Company agreed to raise the aggregate offering of Series C Shares from $50 million to $75 million. This offering is continuing apace, but the Company cannot assure you when Ault and Company will complete the remaining purchases of $25 million in Series C Shares, if at all.

News

GPUS

Hyperscale Data Secures $50M Investment, Eyes AI Data Center Growth

In addition to this significant investment, Hyperscale Data is strategically spinning out all of its non-data center and non-Bitcoin mining assets. This move is aimed at refining the Company's core focus and reinforcing its commitment to leading the AI-driven data center industry.
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Hyperscale Data Closes $50M Of Aggregate $75M Preferred Equity Investment From Ault & Company; Says It Is Strategically Spinning Out All Of Its Non-Data Center And Non-Bitcoin Mining Assets

Meiwu Technology Regains Compliance With Nasdaq Listing Rule, Which Requires Ordinary Shares To Maintain Minimum Bid Price

Shares of&nbsp;MicroStrategy Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) dropped by 4.08% following the company&#8217;s announcement to issue more shares to finance additional Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) acquisitions. This move aligns with MicroStrategy&#8217;s ongoing strategy to bolster its Bitcoin reserves.
What Happened: MicroStrategy&#8217;s recent filing&nbsp;with the U.S. Securities and&nbsp;Exchange Commission (SEC) aims to expand&nbsp;the authorized number of Class&nbsp;A&nbsp;common stock from 330 million&nbsp;to 10.33 billion units and&nbsp;preferred stock from 5 million&nbsp;to over 1 billion units.&nbsp;This move underscores the company&#8217;s transition from a software enterprise&nbsp;to a major Bitcoin investor.
See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/24/12/42664692/bitcoin-flat-ethereum-dogecoin-spike-ahead-of-christmas-analyst-says-decline-in-btc-dominance-leaves-room-for-altcoins-to-pick-up?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin Flat, Ethereum, Dogecoin Spike Ahead Of Christmas: Analyst Says Decline In BTC Dominance Leaves &#8216;Room For Altcoins To Pick Up&#8217;</a>
The company recently acquired&nbsp;$561 million worth of Bitcoin,&nbsp;marking its seventh consecutive week&nbsp;of purchases, with total holdings now estimated at $40 billion. Despite Bitcoin&#8217;s 135% increase this year, market volatility is expected as $43 billion in&nbsp;Bitcoin and Ether derivatives are&nbsp;due to expire on Friday.
Meanwhile, Bitcoin Thursday during pre-market hours was trading at $95,621.41. The cryptocurrency briefly hit an intraday peak of $99,876.70. A broader cryptocurrency index, which includes tokens such as Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>), and Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>), also experienced a minor recovery, rising by 0.2%.
Why It Matters: MicroStrategy&#8217;s decision to issue more shares comes on the heels of its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42660092/microstrategy-sinks-after-nasdaq-100-inclusion-bitcoin-bet-under-fire">recent inclusion in the Nasdaq 100</a>, which has not been without challenges. The company&#8217;s stock fell over 8.5% on its debut in the index, marking a difficult start to its tenure. Over the past month, MicroStrategy&#8217;s stock has plunged more than 37% from its all-time high, reflecting investor concerns over its aggressive Bitcoin strategy. The company&#8217;s recent sale of $561 million in common stock to purchase an additional 5,262 Bitcoins at an average price of $106,662 per coin has further intensified scrutiny.
The latest analyst ratings for MicroStrategy Inc were issued by Bernstein on Dec.12, and by both TD Cowen and Barclays on Nov. 25. These analysts, <a href="https://www.benzinga.com/quote/MSTR/analyst-ratings">tracked by Benzinga</a>, have set an average price target of $546.67, suggesting a potential upside of 58.01% for the stock.
<figure class="wp-block-image size-large"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/26062848/Screenshot-2024-12-26-at-4.58.41%E2%80%AFPM-1024x364.png" alt="" class="wp-image-707471" /></figure>
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42673114/bitcoins-outperformance-could-leave-dogecoin-shiba-inu-sidelined-but-propel-pepe-dogwifhat-bonk-to-new-highs?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin&#8217;s Outperformance Could Leave Dogecoin, Shiba Inu Sidelined, But Propel Pepe, Dogwifhat, Bonk To New Highs</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

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MSTR

MicroStrategy Stock Tumbles Over 4% In Thursday Premarket: What's Going On?

Macro Economic Events

Econ #s

Economics

France Jobseekers Total For November 2,935.0K  Vs. 2,891.5K Prior

HC Wainwright &amp; Co. analyst Raghuram Selvaraju maintains Anavex Life Sciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVXL#NASDAQ">AVXL</a>) with a Buy and raises the price target from $40 to $42.

Price Target

Analyst Ratings

AVXL

HC Wainwright & Co. Maintains Buy on Anavex Life Sciences, Raises Price Target to $42

Chinese EV startup Nio Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) launched its new lower-priced EV brand Onvo in May this year. The brand started selling its first vehicle- the Onvo L60- in late September and since then, Nio sales have been on the rise.
What Happened: The Onvo L60 is a mid-size electric SUV that starts at 206,900 yuan ($28,347) with the battery pack included, much lower than Tesla&#8217;s affordable models Model 3 or Model Y in China.
In September, Nio delivered 832 Onvo L60s despite having only a few selling days. In October, the first full month of sales, Onvo deliveries rose to 4,319. In November, L60 deliveries rose to 5,082, implying demand for the vehicle. 
In August, the month before Onvo deliveries commenced, Nio delivered 20,176 vehicles, marking a growth of just 4.4% year-on-year.
In September, the first month of Onvo L60 deliveries, Nio&#8217;s total deliveries jumped 35.4% as compared to the corresponding period last year. In October and November, deliveries <a href="https://www.benzinga.com/24/12/42260165/li-auto-xpeng-nio-heres-how-november-deliveries-of-chinese-ev-startups-stack-up">marked an increase of 30.5% and 29%</a>, respectively.
Why It Matters: Nio identifies itself as a premium EV brand. Its ET9, for instance, starts at 788,000 yuan, including the battery. 
The low-cost EV from the company&#8217;s Onvo brand has helped it move to the low-cost EV segment which has significant demand.
Earlier this month, Nio also <a href="https://www.benzinga.com/24/12/42550944/whats-going-on-with-nio-stock-today">launched a new brand called Firefly</a>, touted as a rival to Mercedes&#8217; Smart and BMW&#8217;s Mini. The brand&#8217;s first vehicle shares its name and pre-sales started at a price of 148,800 yuan. It is expected to be launched in April 2025.
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42668333/tesla-model-x-lucid-gravity-or-rivian-r1s-which-three-row-electric-suv-is-a-better-buy" target="_blank" rel="noreferrer noopener">Tesla Model X, Lucid Gravity Or Rivian R1S: Which Three-Row Electric SUV Is A Better Buy?</a></li>
</ul>
Photo courtesy: Nio

Tech

Nio's Onvo Brand Helps Spur Delivery Growth With Cheaper Offering

HC Wainwright &amp; Co. analyst Raghuram Selvaraju maintains PolyPid (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPD#NASDAQ">PYPD</a>) with a Buy and lowers the price target from $14 to $11.

PYPD

HC Wainwright & Co. Maintains Buy on PolyPid, Lowers Price Target to $11

Raymond James analyst C. Gregory Peters maintains Kemper (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMPR#NYSE">KMPR</a>) with a Strong Buy and raises the price target from $75 to $82.

KMPR

Raymond James Maintains Strong Buy on Kemper, Raises Price Target to $82

Earnings

NVNI

Nvni Group Reported FY23 Revenue Growth Of 36% YoY

SATS

Microelectronics Technology Enters Strategic Partnership With EchoStar To Advance Development Of Energy-Efficient Open RAN Macro Radios With NTIA Grant

HC Wainwright &amp; Co. analyst Raghuram Selvaraju upgrades RAPT Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RAPT#NASDAQ">RAPT</a>) from Neutral to Buy and maintains the price target from $10 to $10.

Upgrades

RAPT

HC Wainwright & Co. Upgrades RAPT Therapeutics to Buy, Maintains Price Target to $10

Demand for <a target="_blank" href="https://www.benzinga.com/topic/ai" rel="noreferrer noopener">artificial intelligence-enabled</a> smartphones could serve as a buffer for parts of the semiconductor industry against a potential slowdown in data center investments, Financial Times <a target="_blank" href="https://www.ft.com/content/54c3d188-9c5d-4664-94c4-366207ef9aad" rel="noreferrer noopener">cites</a> Doug Lefever, CEO of Advantest, a Japanese supplier of chip testing equipment for Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
Lefever expressed concern over possible dips in spending by <a target="_blank" href="https://www.benzinga.com/news/24/09/41066968/microsoft-google-meta-pave-path-to-ai-expansion-nvidia-and-broadcom-set-to-reap-benefits" rel="noreferrer noopener">major U.S. tech companies</a>, such as Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which have been driving the construction of advanced data centers.
Lefever told the FT that while fluctuations in data center spending may not last long, any decline could significantly disrupt the semiconductor supply chain due to its reliance on hyperscalers.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42675098/netflix-takes-vmware-to-court-over-patent-infringement-claims" rel="noreferrer noopener">Broadcom and Netflix Clash Over Patent Disputes Ahead of 2025 Trial</a>
He added that the industry&#8217;s cyclical nature could lead to what he described as &#8220;vicious&#8221; downturns. However, he remained optimistic about the potential growth of AI smartphones, suggesting that a breakthrough application could rapidly drive consumer demand and spark a wave of handset replacements.
Advantest, headquartered in Tokyo, holds over 50% of the semiconductor testing market and has benefited from the rising complexity and cost of chips.
Lefever highlighted the growing complexity of chip testing, with Nvidia&#8217;s latest Blackwell products requiring three to four times longer to test than previous generations, as a key driver of sustained demand for Advantest&#8217;s solutions.
The company&#8217;s success extends to high-end testing equipment, which costs $1 million per unit and boasts a market share exceeding 60% in specific categories. Despite geopolitical challenges, such as U.S. restrictions on China, Lefever told the FT that increased demand elsewhere quickly offset lost sales in China. He emphasized that Advantest remains well-positioned globally, with operations in 18 countries and a diversified customer base.
Apple began introducing its <a target="_blank" href="https://www.benzinga.com/news/24/10/41526650/apples-ai-powered-future-iphone-growth-surge-by-2026-with-new-iphone-17-ai-integration-analyst-says" rel="noreferrer noopener">Apple Intelligence features</a> on October 28 with the launch of iOS 18.1, offering initial AI functionalities.
The rollout will continue with iOS 18.2, including ChatGPT integration and advanced tools like Visual Intelligence and Genmoji, aiming to boost future sales.
Needham&nbsp;analyst Laura Martin expects Apple iPhone to account for up to 96% of the <a target="_blank" href="https://www.benzinga.com/news/24/09/41005053/apple-iphone-to-fuel-96-of-2025-revenue-analyst-says-a-safer-bet-than-ai-heavy-amazon-alphabet-micro" rel="noreferrer noopener">company&#8217;s 2025 revenue</a>.
International Data Corporation (IDC) had <a target="_blank" href="https://www.benzinga.com/news/24/08/40600289/apples-market-share-poised-to-gain-genai-and-iphone-16-lead-the-way-idc" rel="noreferrer noopener">reignited confidence in</a> smartphone manufacturers, including Apple, with a new market forecast projecting a 5.8% rise in global smartphone shipments to 1.23 billion units in 2024, recovering after two tough years.
The report highlighted increased demand for budget Android smartphones in China and emerging markets and strong adoption of generative AI smartphones in premium markets as key growth drivers.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42672262/hive-digital-boosts-ai-ambitions-with-30-million-nvidia-gpu-deployment" target="_blank" rel="noreferrer noopener">HIVE Digital Boosts AI Ambitions With $30 Million Nvidia GPU Deployment</a></li>
</ul>
Image via Shutterstock.

Media

GOOG

GOOGL

MSFT

NVDA

AI Smartphones To Cushion Semiconductor Industry Amid Data Center Uncertainty: Report

This appointment not only introduces strong leadership to Color Star but also strengthens the company's ties with the Middle East, particularly the UAE.

Management

Reported Earlier, Color Star Technology Says Shaikh Humaid Abdulla Rashed Ahmed Almualla, A Prominent Member Of The UAE Royal Family, Has Joined As An Independent Director

HC Wainwright &amp; Co. analyst Andrew Fein initiates coverage on Palvella Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PVLA#NASDAQ">PVLA</a>) with a Buy rating and announces Price Target of $38.

Initiation

PVLA

HC Wainwright & Co. Initiates Coverage On Palvella Therapeutics with Buy Rating, Announces Price Target of $38

Raymond James analyst C. Gregory Peters downgrades Hagerty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HGTY#NYSE">HGTY</a>) from Market Perform to Underperform.

Downgrades

HGTY

Raymond James Downgrades Hagerty to Underperform

Needham analyst Chris Pierce maintains ACV Auctions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACVA#NASDAQ">ACVA</a>) with a Buy and raises the price target from $26 to $28.

ACVA

Needham Maintains Buy on ACV Auctions, Raises Price Target to $28

Raymond James analyst Aaron Kessler upgrades EverQuote (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVER#NASDAQ">EVER</a>) from Outperform to Strong Buy and maintains the price target from $35 to $35.

EVER

Raymond James Upgrades EverQuote to Strong Buy, Maintains Price Target to $35

Raymond James analyst C. Gregory Peters upgrades Progressive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) from Market Perform to Outperform and announces $305 price target.

Raymond James Upgrades Progressive to Outperform, Announces $305 Price Target

Reported Earlier, Nippon Steel Extends Estimated Time To Close US Steel Merger Agreement To Q1 Of Calendar Year 2025 From Previously Expected Q3 Or Q4 Of Calendar Year 2024

KSB SE & Co

Despite hopes for <a href="https://open.substack.com/pub/europeancapitalinsights/p/ecb-rate-cut-optimism-is-not-enough?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web">a post-pandemic resurgence and cooling inflation</a>, the European economy is now bracing for stagflation as regional economies show signs of a slowdown.



Economic data from the third quarter paints a bleak picture. Purchasing Managers&#8217; Index (PMI) and the Euro area sentiment indicators have <a href="https://gmk.center/en/news/business-activity-in-the-euro-area-declined-in-september/">declined</a> in September.&nbsp;



A PMI of 45, the lowest year-to-date, points that the fourth quarter will likely see near-zero growth, if not a contraction. It is questionable whether the European Central Bank (ECB)'s actions will halt this trend.&nbsp;



"ECB officials largely acknowledged that <a href="https://www.morningstar.co.uk/uk/news/256213/ecb-cuts-rates-as-expected-with-disinflation-well-on-track.aspx">downside risks to growth</a> were starting to materialize, particularly following the flash PMI miss on September 23," Goldman Sachs said in a note.



Analysts, such as global CIO fixed income at AllianzGIin Michael Krautzberger, are concerned that trade conflicts may return after the upcoming US elections in November. Presidential candidate Donald J Trump has threatened to impose sanctions on China. <a href="https://open.substack.com/pub/europeancapitalinsights/p/europe-carmakers-criticize-eus-chinese?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web">The EU and China could clash after Brussels</a> imposed tariffs earlier this month on Chinese electric vehicle makers.&nbsp;



<h3 class="wp-block-heading">European Economy Experiences Industrial Slowdown</h3>



Consumer confidence remains shaky, business investment is struggling, and the ECB faces mounting pressure to continue cutting interest rates to revive economic activity. Yet, even with additional potential monetary easing, the outlook remains uncertain, prompting ING to downgrade the 2025 outlook for the European economy to 0.6%.



"The risk of undershooting our target in the long term is now as present as the risk of overshooting it,&#8221; French Central Bank governor François Villeroy de Galhau <a href="https://europeancapitalinsights.substack.com/p/french-governor-cautious-about-eurozone">recently stated</a> regarding the monetary policy.



Although <a href="https://www.statista.com/statistics/1201068/annual-net-earnings-in-the-eu/">real wages have increased</a> due to cooling inflation, the savings rate continues to rise, signaling that European consumers remain cautious about spending. The savings rate has now climbed for the <a href="https://tradingeconomics.com/euro-area/disposable-personal-income">eighth consecutive quarter</a>, reaching 15.66% of disposable income—well above its 25-year average of 13.45%.&nbsp;



This trend indicates that households prioritize savings over consumption, reflecting uncertainty around unemployment and economic instability across the region.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe81wdillcbJmQ9jcMX7urMZ9yMzUxHOMyrRpWjdFL_Po4oqrQ0EguHRpojmjzsOpu6xNhuUlutpHdJIP7uwhcRh6HICE7BIKajlVfS-d76GSNDfBFy3XCNNmzxj8vCGwYlbMN47ae3YNkuoREL-26VOVk2?key=_-4i-YkojvJ34FKljdRJ1g" alt="" style="width:624px"/></figure>



Euro Area Disposable Income, Source: Eurostat/<a href="https://tradingeconomics.com/euro-area/disposable-personal-income">TradingEconomics</a>



Furthermore, Eurozone industrial capacity utilization decreased to 77.7% in Q3, indicating declining activity. The PMI for construction contracted for the 29th month in September, with new orders continuing to fall.



<h3 class="wp-block-heading">Lower Inflation, But Risks Remain For EU Economy</h3>



While economic growth is stalling, inflation, the major concern over the past two years, finally shows signs of moderation.&nbsp;



September&#8217;s Harmonized Index of Consumer Prices (<a href="https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/w/ks-gq-24-003">HICP</a>) showed inflation easing from 2.2% in August to 1.7% in September, with services price inflation decreasing from 4.1% to 3.9% for the same period.&nbsp;



Despite ECB staff projections pointing to a <a href="https://www.ecb.europa.eu/press/projections/html/ecb.projections202409_ecbstaff~9c88364c57.en.html">short-term spike in core inflation</a>, which excludes energy and food, analysts expect headline inflation to approach the ECB&#8217;s target of 2% by 2025 and fall below the target in 2025.



Even with concerns about potential spikes in energy prices due to <a href="https://www.benzinga.com/news/24/10/41305454/former-nato-chief-predicts-shutdown-of-oil-amid-israel-iran-conflict">geopolitical instability</a> in the Middle East, the overall inflation outlook appears more positive than in recent years.



<h3 class="wp-block-heading">ECB&#8217;s Interest Rate Cut Plans</h3>



The downward trend in inflation from 4.3% last September provides the ECB with more room to maneuver in monetary policy. Historically, the central bank has been cautious in cutting interest rates too aggressively.&nbsp;



Still, with inflation under control and the European economy weakening, the ECB may now be forced to act more decisively despite pulling the trigger three times since June.



Initially, economists expected the ECB to cut rates once every quarter in 2025. However, given the sharp decline in European economic activity and inflation falling in line with targets, the central bank will <a href="https://think.ing.com/snaps/ecb-rate-decision-oct24/">likely continue cutting rates</a>. Economists polled by Reuters expect another<a href="https://www.morningstar.co.uk/uk/news/256213/ecb-cuts-rates-as-expected-with-disinflation-well-on-track.aspx#:~:text=With%20economists%20expecting%20ECB%20rates,its%20last%20meeting%20in%20September."> 25-basis point cut in December</a> with a 90% probability.



The ECB's deposit rate currently sits at 3.25%, and with further rate reductions, it could reach a terminal rate of 2% by mid-2025. While further cuts will provide some relief to businesses and households, the economic outlook for 2025 remains bleak. The ECB cut the outlook by 0.1% down to 0.8% for 2024 and from 1.4% to 1.3% in 2025.



This sluggish growth, rising geopolitical tensions, and potential for high energy prices create a volatile environment that could complicate the ECB's efforts to restore Europe&#8217;s economic stability.



<h3 class="wp-block-heading">German Companies On Sale In Weak European Economy</h3>



Stagnant growth and deteriorating sentiment have left EU firms out of the investors' spotlight, translating into lower valuations and prompting strategic foreign interests.



"There are some hopes that recent Chinese policy support will help trade-sensitive markets like Germany," Krautzberger said in a note on October 15. "But we doubt this will be enough to offset the weak domestic demand picture within the region."



Foreign takeovers of German companies have surged recently, with international firms on a $47.2 billion shopping spree in 2024 alone. High-profile deals, such as Abu Dhabi National Oil Company's (ADNOC) <a href="https://www.reuters.com/business/energy/abu-dhabis-adnoc-buy-german-chemicals-company-covestro-164-bln-2024-10-01/">€14.7b bid</a> for Covestro and Danish logistics giant DSV's €14.3b acquisition of Schenker, Deutsche Bahn&#8216;s logistics division, show a trend.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdQBBAd1MYKupJuxSG06MloLW_a1ct2VV_TLtzgEN2iTiqypPQQHe49qe0_Bd88w2cwST1qgZ0OCJ868HkXzL8k8qZFh-ChECol9l20OKerF4DywninWD03xM4RLaEo8Ri03xumg2MtYBwgaxndTU2RWjM?key=_-4i-YkojvJ34FKljdRJ1g" alt="" style="width:624px"/></figure>



German M&amp;A Deals 2020-2024, Source: <a href="https://www.ft.com/content/4f41ac99-1816-4f55-a3cc-2ab0fa143ae6">Bloomberg /FT</a>&nbsp;



These acquisitions are partly driven by German companies becoming smaller players on the global corporate stage, often trading at significant discounts compared to their international counterparts.



The most notable German stock market index, DAX 40, trades at a 40% discount to the S&amp;P 500 for a broad comparison. While such disparities showcase the sentiment, they present an opportunity for foreign investors looking for growth through acquisitions and synergies in the chemical, logistics, and manufacturing sectors.



The German banking sector, too, has seen a marked decline, with Deutsche Bank falling from the 10th-largest bank globally by assets in 2013 to 26th in 2024. Still, acquiring such a systemically important financial institution would likely meet significant regulatory hurdles.



<h3 class="wp-block-heading">German Stocks To Watch</h3>



Bilfinger SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BFLBF#OTC">BFLBF</a>) is an industrial services company with a 145-year tradition. It currently trades at an 8.9x PE ratio and a 0.4x PS ratio. It has a pristine balance sheet with plenty of cash and pays a solid 3.6% dividend with room for growth.



KSB SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KSVRF#OTC">KSVRF</a>) is another 19th-century legacy industrial player supplying pumps, valves, and related services worldwide. It trades at 7.9x earnings and 0.4x sales. It has barely any debt and strong cash reserves and pays a 3.9% dividend.



HOCHTIEF (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HOCFF#OTC">HOCFF</a>) is a construction company that has been in business since 1873 and operates globally. It trades at 12.7x PE ratio and 0.3x PS ratio. It has some debt on the balance sheet but also considerable cash reserves and pays a 3.7% dividend.



Disclaimer



Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.



This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content&nbsp;or&nbsp;accuracy.

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