On Tuesday, BNP Paribas (OTC:BNPQY) Exane adjusted its stance on Hypoport AG (ETR:HYQGn) (HYQ:GR), downgrading the stock from Outperform to Neutral and reducing the price target to €210 from the previous €300. The decision followed a detailed review of the company's future profitability, taking into account several factors that could potentially affect its financial performance.
The downgrade was prompted by anticipated challenges that Hypoport may face. According to BNP Paribas Exane, these include sustained high losses at its subsidiary Value AG, headwinds at REM Capital, and uncertainties over the volume contribution from collaborations with Deutsche Postbank and Deutsche Bank (ETR:DBKGn). These elements are expected to exert greater pressure on profitability in 2025 than previously anticipated.
In response to these headwinds, the analyst revised downward the earnings per share (EPS) forecasts for Hypoport by 28% for 2025 and 25% for 2026. This considerable adjustment in EPS expectations has led to the new price target of €210. The revised forecast now positions the company's expected 2025 EBIT 27% below the Bloomberg consensus estimates.
The analyst remains positive on the mortgage volume growth at Europace, Hypoport's digital platform for financing, real estate, and insurance products. However, the optimism is tempered by the aforementioned factors that are likely to challenge the company's earnings potential in the medium term.
The new rating reflects a more cautious outlook on Hypoport's shares, suggesting that until the impact of the identified headwinds becomes clearer, the stock may not outperform the market as previously expected. The revised price target of €210 indicates the analyst's adjusted valuation of the stock based on the latest earnings projections and market conditions.
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