In this article, we discuss the 5 best German stocks to buy now. If you want to read about some more best German stocks, go directly to the 11 Best German Stocks to Buy Now.
5. MorphoSys AG (NASDAQ:MOR)
Number of Hedge Fund Holders: 5
MorphoSys AG (NASDAQ:MOR) is a commercial-stage biopharmaceutical company that engages in the discovery, development, and commercialization of therapeutic antibodies for patients suffering from cancer and autoimmune diseases in the United States. On November 16, MorphoSys posted earnings for the third quarter of 2022, reporting losses per share of €3.60. The revenue over the period was €95.8 million, up 132.5% compared to the revenue over the same period last year.
On November 18, JMP Securities analyst Jason Butler maintained an Outperform rating on MorphoSys AG (NASDAQ:MOR) stock and lowered the price target to $15 from $32, noting that despite the recent disappointment on partnered programs, the company continues to execute well on proprietary pipeline opportunities with continued enrollment in late-stage trials for pelabresib.
At the end of the third quarter of 2022, 5 hedge funds in the database of Insider Monkey held stakes worth $10 million in MorphoSys AG (NASDAQ:MOR), compared to 2 in the previous quarter worth $8.6 million.
4. Fresenius Medical Care AG & Co. KGaA (NYSE:FMS)
Number of Hedge Fund Holders: 13
Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) provides dialysis care and related dialysis care services in Germany, North America, and internationally. On August 30, Fresenius announced that it had been awarded a contract from the US Department of Veterans Affairs to provide dialysis services to military veterans. According to the contract, Fresenius will help treat more than 35 thousand military veterans getting dialysis from the VA.
On November 9, Credit Suisse analyst Christoph Gretler maintained a Neutral rating on Fresenius Medical Care AG & Co. (NYSE:FMS) stock and lowered the price target to EUR 32 from EUR 37.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) with 13 million shares worth more than $184 million.
In its Q3 2022 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) was one of them. Here is what the fund said:
“We exited our position in Fresenius Medical Care AG & Co. KGaA (NYSE:FMS), a vertically integrated provider of dialysis equipment and services. The company has experienced headwinds related to the pandemic, most notably due to the higher mortality rates found among dialysis patients. We anticipated the business would recover post-COVID and benefit from the secular growth of its end markets; however, the company has also suffered from cost inflation pressures and reimbursement challenges. Based on these factors, we chose to sell our remaining shares in favor of better opportunities.”
3. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Number of Hedge Fund Holders: 14
Deutsche Bank Aktiengesellschaft (NYSE:DB) provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. On November 25, Deutsche Bank Aktiengesellschaft said it was selectively hiring in its deals business in Asia, as activity in parts of the region was seeing strong growth. On October 20, Deutsche Bank said that it had laid off 20 New York-based junior bankers and several senior staff within the lender’s Origination & Advisory business.
On November 11, analyst Amit Goel maintained an Equal Weight rating for Deutsche Bank Aktiengesellschaft (NYSE:DB) stock and raised the price target to EUR 11.50 from EUR 11.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $766.8 million in Deutsche Bank Aktiengesellschaft (NYSE:DB), compared to 16 in the previous quarter worth $934.8 million.
In its Q3 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Deutsche Bank Aktiengesellschaft (NYSE:DB) was one of them. Here is what the fund said:
“Deutsche Bank Aktiengesellschaft (NYSE:DB) (4.5% portfolio weight) – Similarly, Deutsche Bank has in recent years undertaken profound cost-cutting initiatives, albeit, in Deutsche’s case, as a result of the scandal, business underperformance and a need to deleverage. Deutsche Bank, and other investment banks with large fixed-income trading operations, clearly benefited from the pandemic in 2020 as a result of unusually large fixed-income trading volumes and market volatility. This is one of the primary arguments for having trading operations alongside more traditional banking and asset management businesses—i.e., that their business performances are not correlated and strong trading performance can, at times, offset challenges in other parts of the business. And times are still challenging for Deutsche’s more traditional corporate and private banking businesses as a result of the interest rate environment. Clearly, a higher (or even less negative) German rate environment would help, but it must be said that Germany has to be among the least attractive banking markets in Europe. The industry structure is unique and frustrates the ability of private banks to produce profit, which in turn limits the ability to accumulate capital, making the entire system more fragile than it ought to be. We value Deutsche’s various banking business lines accordingly. But, turning back to things Deutsche can control, it is indisputable that Deutsche, under CEO Christian Sewing, has made considerable progress towards its critical cost-cutting, deleveraging and capital accumulation goals. At the outset of our investment in Deutsche, our single largest concern was that the bank’s necessary exit from certain lines of business, along with sizeable headcount reduction in others, could cause clients to seek other relationships with banks offering a full range of services and without any perception of counter-party risk. In a worst-case scenario, the result could have been an erosion of revenue even faster than the cost reduction, possibly precipitating a downward spiral. As we emerge from the pandemic with Deutsche now far down the road of transformation, and clear evidence that it is regaining market share in various lines of business, the largest risks appear to be behind us. To that point, in recent public comments, Deutsche management has indicated that it intends to resume returning excess capital to shareholders in 2022.”
2. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 17
SAP SE (NYSE:SAP) operates as an enterprise application software company worldwide. On October 25, SAP SE posted earnings for the third quarter of 2022, reporting earnings per share of $1.12, missing market estimates by $0.13. The revenue over the period was €7.84 billion, up 14.6% compared to the revenue over the same period last year and beating market estimates by €240 million.
On December 2, Stifel analyst Brad Reback maintained a Buy rating on SAP SE (NYSE:SAP) stock and raised the price target to EUR 135 from EUR 130.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in SAP SE (NYSE:SAP) with 6.8 million shares worth more than $549.6 million.
In its Q3 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and SAP SE (NYSE:SAP) was one of them. Here is what the fund said:
“SAP SE (NYSE:SAP) is Europe’s largest software company and the global leader in enterprise resource planning (ERP) software. ERP is a software category that is particularly critical to business functions, and, therefore, has high retention rates even in times of economic stress. For the past several years, SAP has been going through several transitions, including moving to cloud-based SaaS (Software as a service) solutions and an initiative to better integrate its various software solutions. In recent quarters, we have seen increasing evidence that both transitions are being successfully executed, and the result should be a faster-growing, more consistent, higher margin, and more advantaged business. As investment costs from these transition programs wane, and as the benefits of higher growth continue, we expect that earnings will grow at a double-digit rate from next year (2023) onwards. In light of this, we believe the valuation is very attractive for long-term investors.”
1. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 18
BioNTech SE (NASDAQ:BNTX) is a biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. On November 30, BioNTech revealed that it has signed a collaboration and license agreement for a small molecule program targeting immune modulation in cancer with Poland-based Ryvu.
On November 8, Canaccord analyst William Maughan maintained a Buy rating on BioNTech SE (NASDAQ:BNTX) stock and lowered the price target to $191 from $200, noting that the company’s third-quarter results show steady commercial success and advancing pipeline.
At the end of the third quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $186 million in BioNTech SE (NASDAQ:BNTX), compared to 26 in the preceding quarter worth $380.5 million.
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