"Germany is a good hedge on French political risk - keep pair trade DAX <.GDAXI> vs CAC-40 <.FCHI>," they wrote in a research note.

"We continue to see attractive risk-reward for Germany," they added, citing further positive impacts on the DAX from a weakening euro and relative valuations.

"The DAX is trading near 25-year P/E relative lows and is exceptionally attractive versus German bonds, whose TR (total return) is flat-lining over the past 12 months," they wrote.

(Reporting by Sudip Kar-Gupta)