VERBUND AG

Deutsche Bank upgraded Austrian utility Verbund to "hold" from "sell" and raised its price target to €60 from €55, sending the shares up 3.2% to €64.58 on Monday. The stock had closed at €62.55 on Friday. Deutsche Bank analyst Olly Jeffery said higher European power prices should more than offset the impact of a profit warning the bank expects at some point this year. The broker also pointed to the Austrian Constitutional Court's recent questioning of the validity of the country's profit levy, with a ruling expected by year-end. Deutsche Bank said Verbund had underperformed the sector by about 65% since January 2024 and by around 6% this year. Verbund is Austria's largest electricity producer, with a generation portfolio heavily exposed to hydropower.