In recent weeks, the Deutsche Börse share has been one of the few DAX stocks that was able to escape the weak trend in the overall market. With bonus certificates, investors can also achieve high returns when the price is stagnating or coming under significant pressure.
With a price increase of ten percent within the last twelve months, the Deutsche Börse share is one of the few DAX stocks that was able to achieve price gains in this period. Contrary to the current weakness of the overall market, the share has developed positively in the past few days.
Due to the persistently brisk trading activity and the favorable fundamental valuation of the share compared to comparable peers in the industry, experts in their latest analyzes reiterated their buy recommendation for the Deutsche Börse share with price targets of up to EUR 192.
The investment idea
For investors who want to invest in a stock that is as solid as possible, the Deutsche Börse share could definitely be worth a look. Nevertheless, in the currently turbulent (stock market) times, there is a realistic risk that the Deutsche Börse share will also come under pressure.
If you want to significantly reduce the price risk of buying shares directly and still want to take advantage of the opportunity for returns in the double-digit percentage range, you could consider buying a bonus certificate with a cap as an alternative to buying shares directly. The cap defines the maximum payout amount of the certificate. These products enable positive returns not only when the share price rises, but also when the share price stagnates or falls.
The way it works
If the Deutsche Börse share never touches or falls below the barrier of EUR 118.25 by the valuation date of the certificate, then the bonus certificate with cap will be repaid on September 22, 2023 with the bonus level of EUR 175.
The key data
The barrier for the DZ Bank bonus certificate with cap (ISIN: DE000DW3QA18) on Deutsche Börse shares is EUR 118.25. At EUR 175.00, the bonus level and cap were attached. Valuation date is September 15, 2023, the certificate will be redeemed on September 22, 2023. At the Deutsche Börse share price of EUR 160.05, investors were able to purchase the certificate for EUR 156.54. The certificate is therefore cheaper to get than the share.
Since investors can currently buy the certificate for EUR 156.54, it enables a gross return of 11.79 percent (= 9.60 percent per year) in 15 months if the share price has never fallen by 26.12 percent to 118 by the valuation date. 25 euros or below.
If the Deutsche Börse share touches the barrier of EUR 118.25 by the valuation day and the share is trading below the cap on that day, the certificate is redeemed at the closing price of the share determined on the valuation day. If this is fixed below EUR 156.54, then the certificate investment will cause a loss.
This article does not constitute a recommendation to buy or sell Deutsche Börse shares or investment products based on Deutsche Börse shares. No liability is assumed for the correctness of the data.