Deutsche Boerse Reports Decent Second-Quarter Results; Fair Value Estimate Maintained

We maintain our EUR 150 per share fair value estimate for wide-moat Deutsche Boerse after it reported a decent set of results. Net revenue grew 4% on an organic basis, while operating costs declined 2%. Overall, we think this performance is decent given the cyclical headwinds the group was expected to face in the first half of this year. Lower volatility impacted most of its trading-related businesses in Eurex, Xetra, and 360T, while low interest rates were anticipated to pose a drag on net treasury income at Clearstream. The exchange group is on track meeting its 2019 to 2023 10% average annual growth targets in both revenue and EBITDA.