Grenke stock: Forecast narrowly missed

Last Updated: 4. Januar 2024By

The Grenke share has had a relatively turbulent year 2023. After a very strong start in the first third of the year (up almost 50 percent), the stock had to give up all its gains in the following months. It was not until Q4 that the Grenke share was able to stabilize significantly and is now trading at just under 25 euros (as of January 4, 2024, around 11 a.m.).

The financial service provider has already presented the figures for last year’s leasing business – and has narrowly missed its own forecast. For the current year 2024, Grenke remains optimistic and expects significant growth. This is a good sign for investors, but the bar for 2024 remains high.

Grenke with slightly less growth than planned Just 2 months ago, Grenke confirmed its forecast for the full year 2023. The leasing new business was expected to land in the lower half of the forecast range of 2.6 to 2.8 billion euros. However, this target was slightly missed, as Grenke achieved new business of 2.58 billion euros in the past year. The forecast was not quite met, but this is still an increase of over 12 percent compared to the previous year.

Already at the beginning of September, the company cut its forecast for 2024. Instead of the previously targeted 3.4 billion euros in leasing new business, the new target for 2024 was 3.0 to 3.2 billion euros. Grenke is still holding on to this at the beginning of the year. This means that the leasing business must grow by at least 16 percent in the current year.

Grenke share: Opportunities still exist In view of the strong business development in 2023 and the forecast for 2024, the Grenke share still has potential for catching up. Despite the weak economy, the company is currently able to grow. The only problem is if the high expectations cannot be fully met.

The forecast cut in September 2024 has already caused some dissatisfaction among investors. And even the current plan with 3.0 to 3.2 billion euros in new leasing business appears at least ambitious after the figures for 2023. The company will have to measure itself against this in the coming quarters – this is also crucial for the performance of the Grenke share.