March 7th, 2025 | 06:55 CET
100% RALLY! And now? Renk, Salzgitter, and AppLovin partner MiMedia
Can it continue to go up after a 100% rally? There is a lot to suggest that the still largely unknown MiMedia stock could keep going. The cloud pearl is on the verge of a revenue leap and is relying on AppLovin to monetize its cloud services – itself an AI highflyer but now overvalued. MiMedia, on the other hand, wants to start scaling in the current year. Salzgitter caused a stir on Wednesday with a share price jump of over 15%. Even though profits were taken yesterday, analysts see further upside potential for the stock. Could a revaluation be possible? There are good reasons for profit-taking after Renk's 10% rally this year, but the stock wants to keep rising. Deutsche Bank recommends buying, but there is a big catch.
time to read: 3 minutes
|
Author:
Fabian Lorenz
ISIN:
RENK AG O.N. | DE000RENK730 , SALZGITTER AG O.N. | DE0006202005 , APPLOVIN CORPORATION | US03831W1080 , MIMEDIA HOLDINGS INC | CA60250B1067
Table of contents:
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
Tag cloud
Shares cloud
MiMedia: Cloud hidden gem on the verge of breakthrough in 2025
Another hidden gem in the cloud universe is the stock of MiMedia. The Company offers a cloud platform for media content based on artificial intelligence (AI). It focuses on Android devices – the most widely used smartphone operating system worldwide – although the platform is compatible with all operating systems. In terms of markets, the Company is active in the important US market but focuses on emerging markets in Latin America, Southeast Asia, and Africa. The use of cloud services to store, edit, and share photos, for example, is still in its infancy there. In 2025, 1 billion new smartphones could be added there, and if MiMedia is pre-installed on even a fraction of them, millions in revenue beckon.
MiMedia not only wants to offer a low-priced cloud but also to provide a unique user experience through AI. The Company wants to convince users with localized features, including language support for Africa with Swahili and Indian dialects. This means that the app, which is protected by 16 patents, can be accessed by users worldwide. MiMedia is working with smartphone manufacturers and telecommunications providers worldwide to penetrate the market, offering its partners recurring revenue streams, improved customer retention, and market differentiation. MiMedia has completed the development phase, and the app is available in the major app stores. It is expected to be pre-installed on more and more smartphones.
As a result, revenues and earnings are expected to increase significantly in the current year. Since January 2025, smartphones with MiMedia's solution integrated as a pre-installed media library have been delivered. According to the Company, the first 2 million smartphones with the app pre-installed have already been delivered and sold in the US – a milestone, as advertising revenues are particularly high in the US. Based on current device contracts, the US alone has a gross revenue potential of over USD 125 million. For context: MiMedia's market capitalization is currently in the low double-digit million CAD range.
To fully leverage its advertising potential, MiMedia has expanded its cooperation with AppLovin – last year's AI high-flyer. With AppLovin's AI, the ad delivery within the MiMedia platform is expected to be optimized, thereby improving monetization.
These prospects should continue to drive MiMedia's shares higher.
Renk: Buy with a target price of EUR 29?
Like MiMedia, Renk's share price doubled in the first months of 2025. However, with a market capitalization of almost EUR 4 billion, the transmission specialist is no longer cheap and is anything but a hidden gem.
At around EUR 38, Renk's shares are trading close to their all-time high and are shining with relative strength. Following the rally, the stock will now also be included in the MDAX. This puts it on the heels of the DAX-listed Rheinmetall. However, the share is quite far from analyst target prices. Deutsche Bank confirmed its "Buy" recommendation for Renk shares this week. After the scandal at the White House, it has once again become clear that Europe is increasingly on its own regarding defense. Accordingly, analysts see positive growth opportunities for German defense companies. Here is the catch: The target price for Renk shares is EUR 29. This would mean a significant drop from the current level. How this aligns with the "Buy" recommendation is something only the analysts know.
Salzgitter: Revaluation?
On Wednesday, Salzgitter shares caused a stir. The steel company's shares rose by over 15%. The steel group could also benefit from the billions of euros in investments planned in Germany for armaments and infrastructure. Given these prospects, DZ Bank upgraded the stock from "Hold" to "Buy". The price target was raised from EUR 20 to EUR 28. The stock is currently trading below EUR 25. The analysts believe a revaluation is possible and see several drivers: The billions for infrastructure projects, an even stronger focus on climate-friendly steel production, and protective measures for the steel sector in Europe.
Given the sharp rise in the stock price, Salzgitter should provide a positive outlook during the next earnings report. In 2024, a high loss was still generated.
Even after a doubling in the stock price, a stock can still be undervalued. This certainly applies to MiMedia. The app has been developed, and the Company can now fully focus on growth this year. The valuation seems sensationally low for a cloud stock. Renk, on the other hand, is far from cheap. Expectations are high, and the Company – just like Rheinmetall and Hensoldt – needs to prove that revenue and earnings can consistently increase in the coming years. Salzgitter is a turnaround bet. It remains to be seen whether the turnaround in operating business will actually succeed.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
