Shares of Jenoptik AG jumped more than 6% on Friday following an upgrade from Deutsche Bank, which moved its rating on the German photonics and semiconductor equipment company from "hold" to "buy." The brokerage also increased its price target to €28, up from €22, while the stock last closed at €23.82.
Deutsche Bank framed the change as a response to an improved risk-return profile for the company. The analysts said the upgrade reflects greater potential upside relative to downside, a view they tied to two key developments cited in their note.
First, a leadership change is imminent. Chief executive Stefan Traeger is scheduled to step down in mid-February. Deutsche Bank acknowledged that Traegers strategic pivot toward photonics was the right direction, but added that many market participants consider the company's portfolio to have remained insufficiently streamlined during his tenure.
Second, the bank highlighted a more favorable chance of a cyclical recovery in Jenoptik's core semiconductor segment, expected in 2026. Deutsche Bank said this improved outlook for the semiconductor business supports a reassessment of the stock's prospects.
The brokerage suggested the appointment of a new chief executive could act as a catalyst. A new leader, Deutsche Bank wrote, might renew focus on portfolio simplification and on crystallizing value - themes the bank said it has previously emphasized.
Jenoptik operates across both photonics and semiconductor-related markets, sectors whose performance is shaped by cyclical demand trends. Deutsche Bank's upgrade and higher price target reflect its view that a combination of leadership change and a potential cyclical improvement in semiconductors alters the company's risk-return dynamics enough to justify a more constructive rating.
Investors reacted to the brokerage signal and the prospect of management-led portfolio moves, pushing the shares higher during Friday trading.