FRANKFURT (dpa-AFX) - Some stocks in the SDax reacted with significant fluctuations to a package of reclassifications by the analyst firm Jefferies on Monday morning. Following buy recommendations, the shares of SMA Solar and PVA Tepla rose by 16 and 11 percent, while the opposite was the case for Verbio, Flatexdegiro and SGL. Downgrades to "Hold" weighed on prices in early trading, in the case of Verbio even in the double-digit percentage range. In the other two cases, the price losses were milder.

The experts at Jefferies now see more favorable conditions for mid-sized European companies, especially those with a cyclical nature, after four years of below-average performance. At PVA, they emphasized that the profile of opportunities and risks becomes more attractive after a price slide. Within three years, the technology group's shares had fallen by up to 80 percent from their record high.

The situation is similar for SMA Solar, because the shares of the solar technology manufacturer had an extremely difficult year in 2024, when they were the weakest SDax stock with a 78 percent loss for the year. Here, the Jefferies experts are optimistic for similar reasons as in the case of PVA. They believe the securities are at their lowest point.

The situation is different for Verbio, which was already the second-worst performer on the SDax in 2024. On Monday, analysts said that balance sheet risks due to possible write-downs on emission certificates spoke against the previous buy recommendation. The experts at Jefferies are therefore taking a more cautious approach to the shares, even though the price weakness actually suggests that the opportunities and risks are now more balanced.

In addition, the shares of SGL and Flatexdegiro were each downgraded to "Hold". In the case of SGL, this was justified by headwinds in the carbon fiber business due to a lack of recovery in demand. The company itself expects that the prices it can achieve for products in this area will likely remain low even after 2025.

For online broker Flatexdegiro, this move follows a strong performance last year, when its shares were the third-best performer on the SDAX. Since their low in December 2022, when a financial regulator audit was the topic, they had almost tripled in value at their peak. Here, the experts expect 2025 to be a year of transition with only muted profit potential, especially since the decline in interest income should also create headwinds./tih/ag/stk