Deutsche Bank, Globex Mining, Rheinmetall – High-flying stocks for good reason

Deutsche Bank – Dividend increase

Deutsche Bank presented a mixed picture for 2024: while revenues rose by 4% to EUR 30.1 billion, after-tax profits fell by 28% to EUR 3.5 billion. The main reasons for this were valuation adjustments for tax claims and high legal costs – in the fourth quarter alone, EUR 650 million was spent on legacy issues such as the Postbank dispute. The market reaction was muted: after publication, the share price fell by 6% at its peak, but this was likely also partly due to the ECB's interest rate cut. Shareholders will be pleased with the increased dividend of EUR 0.68 per share and a share buyback program of EUR 750 million.

For 2025, the bank is targeting earnings of EUR 32 billion – driven by the investment bank, which will already generate over a third of earnings in 2024. In particular, trading in fixed-income products and rising interest income are expected to support growth. At the same time, the cost-income ratio is expected to fall from 76% (2024) to 65%. Savings of EUR 2.5 billion through job cuts and branch optimization should help achieve this. CEO Christian Sewing was satisfied: "2024 was an important year for us. Our strong and growing operating profit reflects the successful transformation of recent years."

Despite progress, legacy issues weigh on the balance sheet. The 2025 cost-income ratio of 65% is above the original target of 62.5%, raising doubts about efficiency. Moreover, the valuation is lagging: with a market capitalization of EUR 35.5 billion, the bank remains significantly smaller than European competitors such as BNP Paribas (EUR 75.7 billion). For investors, the stock remains a balancing act: attractive dividend yields and buybacks are offset by structural challenges. The quarterly figures on April 29 will be an initial stress test for the 2025 strategy. The stock is currently trading at EUR 18.23.

Globex Mining - Diversification and Cash Flow Protection Lead to Success

Globex Mining has established itself as a leading player in the resource sector over four decades. The Company owns 254 projects in North America and Germany, with precious metals such as gold and silver making up half of the portfolio. The rest is divided between base metals, specialty metals, and industrial minerals. With 106 ongoing royalty agreements, Globex generates steady income through licensing fees. For the optioning of its projects, the Company receives either cash or shares. The Company recently sold 1.185 million O3 mining shares to Agnico Eagle at a price of CAD 1.67. Globex also owns long-term metal royalties of up to 2.5% on 156 claims – this results in a cash flow boost when production starts, with no operational risk of its own.

Recent testing at two key projects highlights Globex's potential. Radisson Mining achieved gold recoveries of up to 96% at the O'Brien and New Alger projects, where Globex holds a 2% and 1% net smelter royalty, respectively. At the same time, Brunswick's exploration results at the Lac Escale lithium deposit showed that cost-effective processing without flotation is possible, which should positively impact Globex's 3% gross metal royalty. These advances pave the way for stable long-term revenues while partner companies bear the operational risks.

On January 30, new drill results were received from the Duquesne West project in which Globex has a 50% interest. Further gold occurrences of up to 1.3 g/t gold were found on the property with widespread gold mineralization. An updated mineral resource estimate is expected by the beginning of the second quarter at the latest. With CAD 25 million in cash and a diversified portfolio, Globex is well-positioned. Analysts see the Company as well positioned to benefit from the expected commodity supercycle, driven by rising demand for critical metals and continued exploration success. The share price has increased by over 30% since the beginning of the year and is currently trading at CAD 1.52.

Rheinmetall – Order books are full

Since Russia's invasion of Ukraine, Rheinmetall's business has been booming. The share price is close to its all-time high of EUR 774.80 – up more than 130% since its low in 2024. Driven by rising defense budgets, revenues are expected to grow by 26% to EUR 12.7 billion in 2025, while net profit is expected to climb 40% to EUR 1.29 billion. Analysts see further upside, with the median price target at EUR 751. With a forecast dividend increase to EUR 7.54 per share and a cash flow margin of over 40%, the Company remains attractive for yield-oriented investors.

Rheinmetall recently secured key projects: a ten-year framework agreement for the digitization of the German armed forces, including the TaWAN LBO communication network, which will initially generate EUR 1.88 billion. At the same time, the Company will supply 568 logistics vehicles worth EUR 330 million. Internationally, the cooperation with Leonardo is impressive: the joint venture is targeting Italy's 1,000-vehicle AICS program. In addition, participation in the MGCS tank program with KNDS and Thales strengthens the European network – a strategic lever for future armaments cooperation.

Rheinmetall is targeting EUR 19 billion in revenue by 2027, driven by expansion in the US: 2 tenders worth EUR 54 billion could cement its entry into the market. Innovations such as AI-controlled drone defense systems or laser-based naval technologies underscore the Company's technological leadership. However, its success depends on political decisions: geopolitical détente could curb defense spending, while dependence on major orders such as the 45-billion-dollar XM30 project harbors cluster risks. The share price is currently at EUR 756.20, which is above the analysts' average target price of EUR 751.38.

Despite global uncertainties, some stocks are performing well. Deutsche Bank was able to increase revenue and dividends, but is still significantly cheaper than its competitors in terms of market capitalization. Globex Mining is benefiting from growing demand for raw materials from safe countries and is scoring with a diversified project portfolio. Rheinmetall's order books are filling up as demand for armaments is very high. This is how one record after another is achieved.