JPM upgrades Deutsche Boerse on valuation basis after recent stock decline

** J.P. Morgan upgrades German stock exchange operator Deutsche Boerse DB1 to "overweight" from "neutral", saying the current valuation doesn't reflect the company's quality and diversification

** The stock has underperformed recently due to lower market volatility, disappointing results from its investment management business, and fears of AI disruption, the broker says

** Deutsche Boerse's shares have fallen nearly 14% over the past three months and closed at 221.5 euros on Wednesday

** But JPM sees an upside to the stock from a potential pickup in volatility in 2026

** The company's strong annual free cash flow of up to 2.5 billion euros ($2.9 billion) could be used to fund acquisitions or increase shareholder returns, it adds

** Out of 20 analysts that cover Deutsche Boerse, nine rate it "strong buy" or "buy", ​ten "hold" and one "strong sell", with a median PT of 264.50 euros​​ - LSEG data

($1 = 0.8624 euros)