flatexDEGIRO SE: Risk Reward Update

Research evidence excerpt

flatexDEGIRO SE: Risk Reward Update

UpdateM

RiskRisk RewardReward– flatexDEGIRO- flatexDEGIROSE (FTKn.DE) SE (FTKn.DE)

A pure play in European retail trading

PRICE TARGET €40.00 EQUAL-WEIGHT THESIS

We set our price target of €40 at our base case valuation. To reflect the long-duration nature ▪flatexDEGIRO's geographic footprint,

of flatexDEGIRO's customer relationships, we use a 10-year DCF model, in which we apply integrated scalable platform and range of

~10% WACC, in line with the sector, and 3% terminal growth. financial product offerings are the core

strengths of its business model, driving €41.10

significant growth over recent years.

Consensus Price Target Distribution €25.00 €51.00 company generates ~60-80% of MS PT ▪The

revenues from customer transactions, aSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

significantly higher level than the sector. We

view flatexDEGIRO as a beneficiary of

increasing retail investor participation in

RISK REWARD CHART financial markets in the medium to long

term, which remains relatively

underpenetrated in Europe, while the

EUR €52.40€52.40(+38.77%)€52.40(+38.77%)(+38.77%) company should also benefit from cyclical

uplift in retail engagement in the shorter

term.

48 ▪Valuation captures much of the growth

€40.00€40.00(+5.93%)€40.00(+5.93%)(+5.93%) potential. We are Equal-weight.

€37.76€37.76€37.76

Consensus Rating Distribution

24 €28.10€28.10(-25.58%)€28.10(-25.58%)(-25.58%) 67% Overweight

33% Equal-weight

0% Underweight

MS Rating

Source: Refinitiv, Morgan Stanley Research

JUL '25 JAN '26 JUL '26 JUL '27

Risk Reward ThemesKey: Historical Stock Performance Current Stock Price Price Target

Secular Growth: Positive

View descriptions of Risk Rewards Themes here

BULL CASE €52.40 BASE CASE €40.00 BEAR CASE €28.10