DWS: FVE Up 4% on Positive Fundraising and Optimistic Strategy Shift to Alternatives

We increased our fair value estimate for DWS to EUR 50 per share from EUR 48. We believe that its new management team will be more focused on cost discipline and delivering profitability to DWS' shareholders. Furthermore, we think that DWS has a strong presence in Germany—its primary market—and benefits from it distribution agreement with Deutsche Bank. DWS has shown ambition to expand to private markets with private credit and infrastructure strategies, but we cannot see how it aims to compete in private markets yet; its scale and worldwide presence might help. DWS is now trading at a 14% discount to our fair value estimate, which suggests that some upside remains.