07:22 AM EDT, 10/20/2026 (MT Newswires) -- Berenberg initiated coverage of DWS Group (DWS.F) with a hold rating and a price target of 68 euros, saying the company's volume growth has come at the expense of margins. "DWS Group is a leading, Frankfurt-based European asset manager with EUR1,190bn in assets under management (AuM) across Active, Passive (Xtrackers) and Alternative asset management, backed by majority owner Deutsche Bank (DBK.F) (79.49%). Following a multi-year IT and structural transformation, operating costs have flattened, at cEUR1.8bn, while assets have expanded by c50% since 2020. However, volume growth has become heavily one-sided: essentially all long-term net inflows since 2024 have been driven by low-margin Passive and Cash products," according to a Tuesday note. Berenberg noted that assets under management in Xtrackers more than doubled to 455 billion euros by mid-2026, but organic growth lagged the European ETF market in most years from 2020 to 2025. The AuM share of the higher-margin Alternatives, meanwhile, slipped to 9.7% in the first half of 2026 from 13.2% in 2023. As such, Berenberg expects a below-consensus EPS compound annual growth rate of 6.3% for 2025 to 2028. Cumulative net flows is expected at 148 billion euros for 2026 to 2028, short of management's target of more than 160 billion euros.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.