DWS Earnings: Sound Cost Control Drives 7% Earnings Beat; Our FVE Increases by 8%

No-moat DWS reported a net income of EUR 168 million for the third quarter of 2024, 14% higher than a year earlier. The results were 7% ahead of the company-compiled consensus, driven by slightly-higher-than-expected revenue and 3% lower-than-expected operating expenses. After updating our model with the results, we increased our fair value estimate for DWS to EUR 54 per share from EUR 50 per share previously. We now forecast a lower decline in fee margins and expect lower growth in operating expenses than before.