Deutsche Bank has started coverage on two European companies with contrasting recommendations. The bank placed Haypp Group at "buy", setting a target price of SEK196, compared with the stock's most recent close of SEK120. Swiss Prime Site received a "hold" rating with a target of CHF125, versus its last traded price of CHF137.
In his write-up on Haypp, analyst Daniel Tharian described the company as "the global leader in online nicotine pouch third-party retail," estimating it to be about 14 times the size of its closest competitor. Tharian noted Haypp's product breadth, citing an offering of approximately 3,500 SKUs, and highlighted pricing that sits 20% to 50% below traditional retail. According to the bank, that combination targets high-frequency consumers seeking a wider selection of flavours, formats and brands.
Deutsche Bank also emphasised Haypp's proprietary data captured under its "Media & Insights" business, which the analyst regards as a margin-accretive revenue line. The bank stated this revenue stream generates over half of the group's gross margin and contributes to barriers to entry for rivals. The brokerage noted the broader nicotine pouch market is valued at $11 billion at retail and projected to expand at a 21% compound annual growth rate over 2024 to 2029.
On Swiss Prime Site, analyst Thomas Rothaeusler said the firm combines "highly defensive Swiss real estate with growth," an attribute that supports a premium valuation. Rothaeusler cautioned, however, that this premium already appears to be reflected in the company's share price. Deutsche Bank's forecasts show underlying headline earnings per share rising by 3.7% over the next four years for Swiss Prime Site, compared with 1.2% for the peer identified as PSP.
Rothaeusler explained that the bank's sum-of-the-parts-derived target price for Swiss Prime Site "provides no further upside," even after applying a premium to the group's rental and asset management segments to reflect their stronger growth profiles. He described Swiss Prime Site as "the more opportunistic play with a better growth profile" among Swiss large-cap peers, driven by higher acquisition and development activity and expansion in asset management.
Key numbers and statements from Deutsche Bank underpin both recommendations: a SEK196 target for Haypp vs SEK120 last close; a CHF125 target for Swiss Prime Site vs CHF137 last close; Haypp's estimated scale advantage of roughly 14 times its nearest competitor; an SKU count of about 3,500 and discounts of 20%-50% versus traditional retail; Media & Insights contributing to over half of group gross margin; a retail market valuation for nicotine pouches at $11 billion and an expected 21% CAGR for 2024-2029; and forecasted EPS growth for Swiss Prime Site of 3.7% over four years compared with 1.2% for PSP.