Beat Trump's Tariff Chaos: 3 German Stocks Set to Jump
Position your portfolio for gains as Germany's massive infrastructure push creates big winners.
With the U.S. market tangled in uncertainty—Trump’s tariffs flipping back and forth, trade tensions simmering, and investors bracing for volatility—Germany offers a safer harbor. The newly elected German government is unleashing billions in infrastructure investments to reignite its economy, creating the perfect backdrop for strategic stocks to surge.
I've identified three powerhouse German stocks, each from different sectors, that stand to profit significantly from this massive economic stimulus. These picks offer stability, strong upside, and insulation from America's tariff-driven chaos.
Dive in below—these are stocks you don’t want to miss. 📈
1. Deutsche Telekom: A Power Play with 26% upside
Deutsche Telekom isn’t slowing down—after a 66% stock surge in a year, analysts remain bullish on its long-term prospects, with multiple price targets suggesting up to 26% further upside. With strong earnings growth, expanding market dominance, and a booming U.S. business, the company continues to solidify its position as Europe’s top telecom player.
📊 Key 2024 Results:
✔ €43 billion in EBITDA AL (+6.2% YoY), matching forecasts
✔ 1.2 million new customers added in Germany
✔ 11.6% mobile subscriber growth—a market leader
✔ T-Mobile US (TMUS) dominating wireless signups in the U.S.
💡 Why This Matters:
📈 Analysts remain bullish, citing Deutsche Telekom’s strong cash flow, aggressive 5G rollout, and dominant market share. They point to T-Mobile US as a major catalyst, with its continued subscriber growth fueling higher revenues and profitability.
✅ Market Leadership → Deutsche Telekom is the undisputed leader in German telecom and is rapidly expanding its 5G, fiber, and digital services.
✅ U.S. Growth Engine → T-Mobile US is outperforming competitors, adding millions of new subscribers and driving massive revenue growth.
✅ Strong Future Outlook → 2025 EBITDA AL is projected at €44.9 billion, keeping it on track with its long-term strategy.
💡 Some analysts note short-term valuation concerns, but the consensus remains overwhelmingly positive, with multiple “Buy” ratings and price targets reaching up to €43. J.P. Morgan's Akhil Dattani leads with a €43 target, implying 26% upside, while Goldman Sachs’ Andrew Lee follows closely at €42. Citi's Carl Murdock Smith places the stock at €39. The new German government is set to invest hundreds of billions in infrastructure, making Deutsche Telekom one of the main beneficiaries.
2. Henkel AG: A Solid Consumer Play with More Upside
Henkel AG & Co. KGaA, a global leader in consumer goods and adhesives, has delivered strong stock performance, rising 20% over the past year to a current price of €87. Analysts remain optimistic, with several "Buy" ratings and potential upside of up to 21% from current levels.
📊 Key 2024 Results:
✔ €21.6 billion in projected revenue
✔ €3.8 billion expected EBITDA, growing 7.15% YoY
✔ Net profit forecast at €2.1 billion, reflecting a 16.77% increase
✔ Consistently strong demand in adhesives & consumer goods segments
💡 Why This Matters:
📈 Analysts see continued growth, driven by Henkel’s strong presence in both consumer and industrial markets. The company benefits from pricing power, cost optimizations, and steady demand across its portfolio.
✅ Market Leadership → Henkel remains a dominant player in adhesives, home care, and beauty markets.
✅ Industrial Expansion → Increasing demand for sustainable adhesives and packaging solutions is fueling further growth.
✅ Strong Future Outlook → 2024 guidance suggests higher profitability, with an emphasis on cost efficiency and premium product positioning.
💡 Warburg Research leads the bullish camp, forecasting €105, implying a 21% gain. "Increasing momentum in sales volumes should change the perception," analyst Jörg Frey wrote in his research. He also highlighted that Henkel’s shares trade at a significant discount compared to competitors.
J.P. Morgan follows closely with a €100 price target. Analyst Celine Pannuti notes that Henkel’s premiumization strategy is unfolding after portfolio rationalization, while its unleveraged balance sheet provides opportunities for cash returns and acquisitions.
3. E.ON: Betting on new industrialisation in Germany
E.ON, a leading European energy giant, maintains robust market momentum, currently trading at €12.88. Analysts are highly optimistic, with price targets reaching up to €17, indicating a substantial potential upside of about 32%.
📊 Key 2024 Highlights:
✔ Projected revenue of €80.12 billion, a steady increase of 1.5% YoY
✔ EBITDA expected at €8.5 billion, showing solid growth of 5% YoY
✔ Net profit anticipated at €3.2 billion, reflecting a strong 10% rise
✔ Sustained growth supported by robust market conditions and strategic execution
💡 What Makes E.ON Attractive:
📈 Analysts remain confident about E.ON's future, driven by the company's significant investment in renewable energy, effective cost management, and proactive strategic initiatives. E.ON's commitment to sustainability further strengthens its long-term competitive position.
✅ Leadership in Renewables → Strongly positioned to capitalize on increasing European investments in green and sustainable energy solutions.
✅ Operational Efficiency → Continued profit growth underpinned by effective cost control and operational improvements.
✅ Positive Long-Term Vision → Analysts endorse E.ON’s ambitious financial targets and its ongoing commitment to future-oriented energy infrastructure.
💡 Goldman Sachs analyst Alberto Gandolfi champions the bullish outlook with a strong €17 price target, highlighting significant growth potential with 32% upside. Gandolfi notes that the "fiscal re-industrialization" in Germany could significantly boost electricity demand, driven by new infrastructure investments and the CDU's nuclear power initiatives. Although initially impacted by higher bond yields, these developments could positively support utilities in the long term.
This publication is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Readers are solely responsible for their own investment decisions. The author may hold positions in the securities mentioned.