30/04/25 12:52:03

Foreign shares: “Opportunities can be recognized in the long term”

The customs conflict has dominated events on the stock markets since the beginning of the month. Also in focus: the current reporting season. Traders on the Frankfurt Stock Exchange continue to expect strong price fluctuations, but also see opportunities.


30 April 2025. FRANKFURT (Börse Frankfurt). The widely feared major crash on the stock markets has failed to materialize for the time being. Although the major US indices are still down since the beginning of the year, prices have recovered significantly since the lows in the first week of April. European price barometers such as the Stoxx Europe 600 or the Euro Stoxx 50 are even showing positive signs again this year. However, the situation remains tense. “As no agreements have yet been reached in the customs conflict and an end to the mutual threats is not yet in sight, as well as the current reporting season running at full speed, increased volatility is still to be expected in individual stocks as well as at the overall market level,” analyzes Marc Richter. The head of order book management equities at Steubing AG advises investors to be patient. “In the long term, opportunities can certainly be identified at individual stock level despite the current increased volatility.”

Analysts at Deutsche Bank are also optimistic. “Long-term investors could use possible corrections as a favorable entry point,” they said in a market analysis this morning. The strategists are also hoping for a change in sentiment with regard to the US government, which has been in office for a good three months. “After 100 days of many negative headlines, there could be some positive ones in the next 100 days”. Accordingly, bilateral tariff agreements between the US and key trading partners should help to boost investor confidence. The course of the reporting season so far is also seen as positive. “The results are quite robust and the outlook is characterized by uncertainty rather than catastrophic scenarios”.

“Well suited as a buy-and-hold investment”

Tobacco producer Philip Morris International (US7181721090) even raised its targets for the full year last week. Due to the strong demand for smoke-free products, the Q1 figures exceeded expectations. The share subsequently rose to new record highs. Jonathan Neuscheler from Abilitato GmbH praises the company's “balanced country mix, premium positioning and unrivaled market power”. The significantly higher valuation in historical comparison is “absolutely appropriate” due to the excellent operating performance. He considers the share, which has the “character of an inflation-protected bond with low price fluctuations and rising dividend payments”, to be “well suited for a buy-and-hold investment”. In his opinion, any price corrections can be used to enter or add to the stock.

Netflix shares (US64110L1061) also climbed to new highs (albeit only in US dollars) after the media group once again exceeded analysts' expectations with its quarterly figures in mid-April. Richter cites two reasons for the soaring share price: “The company's growth outlook had a positive impact, as did the additional offerings in the gaming and live sports segment”. Many technology stocks fared less well this month, although they remain among the most heavily traded foreign stocks on the Frankfurt Stock Exchange. “Future profits from interest rate-sensitive securities will hit companies that are currently in the growth phase much harder,” explains the equity trader.

Losses at and with Tesla?

Shares in Tesla (US88160R1014) also continue to be heavily traded. However, tech expert Stefan Waldhauser does not consider the e-car pioneer to be a sensible investment, but rather a question of faith. According to his calculations, 90% of the stock market value is “a bet on Robotaxi/Cybercab and Optimus”. Waldhauser does not share the conviction that Elon Musk will succeed in developing the “next big thing”. He therefore also thinks “that Tesla shares will continue to come under significant pressure in the coming quarters”. He even fears that the company will slide into the red for the full year 2025. However, Elon Musk should never be underestimated and “you always have to expect him to pull new rabbits out of his hat”.

Profit-taking for defense profiteer

Steyr Motors shares (AT0000A3FW25) once again stood out among the highly sought-after individual European stocks in April and were one of the top performers on the trading floor. In March, the share price rose from 20 euros to almost 400 euros within two weeks. Richter describes the underlying story: Steyr produces engines for the defense industry, which is booming on the stock market and experiencing strong growth. In addition, the share has a low free float, making it a very marketable stock. However, the share is currently trading at around 45 euros again. “The German shareholder Mutares has placed shares here, and some investors have also taken profits.”

by Thomas Koch  © 30. April 2025, Deutsche Börse AG

Thomas Koch is a CEFA investment analyst, investment specialist for structured products and a certified certificate consultant. He has been a freelance journalist covering events on the capital markets since the beginning of 2006.

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