Close menu

September 14th, 2022 | 13:05 CEST

Analysts are bullish on BYD, less bullish on Varta and news from Infinity Stone Ventures

  • Mining
  • Commodities
  • Electromobility
  • Lithium
Photo credits:

In terms of sales figures, BYD has already overtaken industry star Tesla. But the share could not benefit from this due to the partial sales of major shareholder Berkshire Hathaway. After the price slide, it now seems to be regaining its footing. Analysts are bullish and see great opportunities for the Chinese e-car maker in foreign expansion, among other things. Experts see few opportunities at Varta at the moment, and the chart is battered. Most recently, an analyst reduced the price target to EUR 65. The newsflow currently offers little hope. Infinity Stone Ventures is an entirely different story. The specialist for critical raw materials in Canada benefits from the political environment and is expanding its lithium areas. More news can be expected in the fall.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , VARTA AG O.N. | DE000A0TGJ55 , Infinity Stone Ventures Corp | CA45675G1037

Table of contents:

    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview


    Infinity Stone: Critical raw materials for a hot autumn

    Canadian producers of critical raw materials have been the focus of investors, and not just since the trip by German Chancellor Olaf Scholz and Economics Minister Robert Habeck. However, the visit has once again increased their importance. Among the listed companies in this sector is Infinity Stone Ventures. The Company has acreage in mining-friendly Ontario and Quebec and specializes in the exploration of commodities critical to electric mobility: Lithium, Copper, Manganese, Graphite, Cobalt and Nickel. Recently, its land holdings in a lithium district in Quebec were expanded to over 3,850 hectares.

    Specifically, these are two new properties in the James Bay lithium district. On these, 21 pegmatites have already been identified in the past. The 2,568 hectares are located near Patriot Battery Metals' lithium project. Infinity's existing Taiga and Hellcat projects are also nearby. A team has already been dispatched to analyze the area further. Accordingly, further details are expected to be released soon. "Infinity Stone is aggressively expanding its presence in the rapidly developing James Bay lithium district by staking additional claims with strategic exploration potential," says Zayn Kalyan, CEO of Infinity Stone." With the acquisition of Hellcat and the newly identified pegmatites at Camaro, the coming months will be very active on the exploration front." The Company has also announced news about its existing projects. With positive newsflow, the stock could be in for a hot fall. The market capitalization is currently only just over CAD 20 million. The Company is still at an early stage, but companies like Rock Tech Lithium or Standard Lithium show what is possible.

    Varta: Analysts see few prospects

    In contrast, investors at Varta are waiting in vain for news on electromobility. After the battery manufacturer disappointed in its core business in the first half of the year due to supply chain problems and high raw material prices, things are expected to improve in the second half of the year. Even if this should be the case, this alone is unlikely to lead to a rising share price. For that, it finally needs details on its expansion in the field of batteries for electric cars. Analysts remain skeptical, like the experts at With the current business plan, the share is still not cheap, with a 2022 P/S ratio of 3; the estimated P/E ratio will also increase significantly. The recently burdened chart situation and the great uncertainty about the development status are also not off the table. Furthermore, it must be feared that the second half of the year will also run without any significant improvements. Management would be advised to address market expectations and explain the status quo in the e-mobility segment in more detail. (link to update AlsterResearch is also disappointed by the current development at Varta. The old margin level is difficult to achieve and the competitive pressure remains high. The analysts lowered their price target for the share from EUR 83 to 65. The stock is currently trading at EUR 66.

    BYD: Digesting Buffett shock

    A winner of electromobility is BYD. The Chinese vehicle manufacturer is simultaneously active in battery production, passenger cars and commercial vehicles in three future markets. In terms of e-car deliveries, BYD has recently overtaken industry star Tesla - although it currently sells vehicles practically only in China. But foreign expansion is underway. However, despite the good operating performance, the partial sale by investment legend Warren Buffett recently caused the share price to slide. But now, the share seems to be recovering, and analysts are optimistic. Citigroup, Credit Suisse and Macquarie have renewed their buy recommendations for BYD shares. The price targets range from HKD 357 (Macquarie) to HKD 640, by Citigroup analysts. Barclays is a bit more cautious in an initial report, but by no means in tone. The analysts recommend BYD shares with a target price of HKD 314 and an "Overweight" rating. "With very competitive products, both in terms of quality and price, Chinese electric cars have a good chance to capture a significant share of overseas markets over time," CNBC quoted Barclays analyst Shao as saying. The stock is currently trading at around HKD 228.

    BYD is consistently continuing its positive operational development. The Buffett shock seems to be digested, but further selling by the investment legend is not ruled out. Varta is not only battered on the chart but also operationally. Infinity Stone is active in a strategically important area. If the newsflow is positive in the coming weeks, the share should be able to profit from this.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 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.

    Der Autor

    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.

    About the author

    Related comments:

    Commented by Juliane Zielonka on November 30th, 2023 | 07:00 CET

    Growth Industries in Focus: Investors see potential in Defense Metals, BASF and Volkswagen shares

    • Mining
    • Tungsten
    • RareEarths
    • Electromobility

    Investors are looking for opportunities in growing markets. Looking at industries currently requiring rare earths - such as energy, defense, electromobility, and many more - leads to the mining sector. Someone has to supply the valuable raw materials so these industries can continue growing. Defense Metals' Wicheeda project in Canada shows promising results, particularly the increase to 6.4 million tons with a TREO content of 2.86%. BASF secures EUR 124.3 million in government funding for a green hydrogen plant in Ludwigshafen, planned in collaboration with Siemens Energy. Volkswagen is facing challenges, emphasized by VW board member Thomas Schäfer, who announced tough cuts to maintain competitiveness without closing plants. Volkswagen will have to respond to change with a more agile approach, especially as China advances in electromobility.


    Commented by Fabian Lorenz on November 29th, 2023 | 10:00 CET

    Sell Varta shares? Positive news from JinkoSolar and Manuka Resources

    • Mining
    • Gold
    • renewableenergies
    • Solar
    • Batteries

    Is the Varta share price party over again? The shares of the former German battery darling have gained around 30% in value over the past six months. But now analysts are advising to sell. JinkoSolar's management had hoped for more buying when it announced the dividend at the end of September. While this was not the case, shareholders can at least look forward to a payout next week. Manuka Resources is currently managing the balancing act between positive cash flows from the sale of gold and investments in resource expansion. The Company is sitting on another potential "treasure" with a project for battery metals. Is the share undervalued?


    Commented by Stefan Feulner on November 29th, 2023 | 09:55 CET

    Aixtron, Blackrock Silver, Coinbase - Ready for the year-end rally

    • Mining
    • Gold
    • Silver
    • crypto

    Bets are increasing that the US Federal Reserve may have at least paused to raise interest rates further. This prompted the gold price to reach a six-month high of USD 2,016 per ounce. As with its little brother silver, the signs point to further price rises in the short term. The world's largest cryptocurrency, Bitcoin, even reached a new high for the year of over USD 38,000. Optimists are already anticipating prices well above the USD 50,000 mark.