Close menu




July 6th, 2022 | 12:23 CEST

Aspermont, SAP, E.ON - Market leaders for challenging times on the stock markets

  • Digitization
  • Technology
  • renewableenergies
Photo credits: pixabay.com

Digitization and the energy transition are two major megatrends that also carry great weight on the capital markets. Market position and scalability of the solutions offered often determine whether a company can stand out or float along with the broad masses. The companies discussed today are among the leading players in their industries and have set the course for growth.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: ASPERMONT LTD | AU000000ASP3 , SAP SE O.N. | DE0007164600 , E.ON SE NA O.N. | DE000ENAG999

Table of contents:


    SAP - Berenberg starts coverage with buy recommendation

    Since the beginning of the year, the shares of Europe's largest software company have lost a good quarter of their value. On the one hand, this reflected the challenging market situation; on the other hand, weak quarterly figures did not particularly please the stock market players.

    SAP is one of the world's leading business software providers and supports companies of all sizes and industries. Machine learning, the Internet of Things and advanced analytics are core to the solutions portfolio. Cloud-based applications play a key role in this. This positioning enables the Germans to achieve scalable and high-margin growth. Nevertheless, growth initially requires high investments, which recently exerted greater than expected pressure on margins. The operating margin in the cloud business slipped 3.7 percentage points to 23.7%.

    Nevertheless, many analysts agree that the group is advantageously positioned, and the stock has upside potential. Most recently, the private bank Berenberg gave the stock a "buy" rating and a target price of EUR 110 - an upside potential of around 30%. According to the experts, SAP is benefiting from rising demand due to the digital transformation, and the cloud business is also gradually gaining in importance. As a result, free cash flow should increase to over EUR 8 billion in 2025.

    Aspermont - A market leader from Down Under

    The Australians can confidently be taken as a prime example of successful digital transformation with the establishment of highly scalable business models. With Mining Journal and Mining Magazine published for well over 100 years, Aspermont is the leading industry address.

    Based on a XaaS model, Aspermont distributes high-quality content to a growing group of corporate customers. The decisive asset is the data pool of around 8 million decision-makers from the mining, energy and agricultural sectors. Based on this, user behaviour patterns are marketed, and leads are generated. In addition, Aspermont offers content, advertising, sponsoring and events. A subscription model enables predictable cash flows, and premium content is also on offer.

    With the founding of the "Blue Horseshoe" platform together with partners Spark Plus and International Pacific Capital, the Australians have entered the fintech sector. Institutional investors are given the opportunity to invest in companies here. Aspermont owns 44% of the joint venture.

    The operating figures of the group look good. In the first half of the year, revenues increased to over AUD 9 million, and net liquidity amounted to AUD 6.6 million as of the reporting date. Currently, the shares are trading at AUD 0.018. The analysts at GBC attest the share a significant upside potential with a price target of AUD 0.11. A detailed update on the Company and the published quarterly data can be found in the researchanalyst.com update on Aspermont.

    E.ON - Backbone of the energy transition

    The security of the supply of energy and raw materials has taken on great political weight due to the war in Ukraine and the high level of dependence on Russia. The turbulence can also be seen on stock exchanges around the world. The turn towards more energy from renewable sources is a crucial step. According to the latest calculations by the industry association BDEW and the Stuttgart-based research institute ZSW, renewable energy sources covered 49% of Germany's electricity consumption in the first half of the year. That represents a pleasing increase of 6 percentage points compared with the same period last year. Wind energy continues to play the most significant role here.

    Too often forgotten in the discussion about the energy transition is the infrastructure required for it. As a major network operator, E.ON forms the backbone of the energy transition. Increasing decentralized energy generation and integrating these sources into the grid (smart grids) represent a key challenge for the future. Here, E.ON has the right answers. The valuation level of the stock is inviting, with a 2023 P/E ratio of 10 and a dividend yield of over 6%. Analysts believe the share has an upside potential of 45% over the next 12 months.


    Companies with good market positioning are worth a look in any market phase. That applies to top dogs such as SAP and E.ON but also to promising second-tier stocks. Aspermont stands out within this category. The earnings potential of the new investment platform should soon be reflected in the figures. Analysts believe the share has the potential to multiply.


    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.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Juliane Zielonka on November 25th, 2022 | 10:29 CET

    TubeSolar, Nordex, Siemens Energy - Energy drivers for the portfolio

    • photovoltaics
    • Solar
    • renewableenergies

    German Engineering is a seal of quality, also abroad. What sometimes takes a little longer in development pays off in the long run. Solar system manufacturer TubeSolar from Augsburg can be pleased about a TÜV certification for its patented products. In Germany, the share of photovoltaics in the power grid rose by 11.2%, and worldwide the CAGR of PV installations increased by 32%. JinkoSolar, a leading Chinese manufacturer of solar modules, has also played a significant role in this growth. However, China shares entail risks. Siemens Energy is not without risk at the moment either. The management heads are changing in the internal takeover game of the Spanish wind energy company Gamesa.

    Read

    Commented by Stefan Feulner on November 24th, 2022 | 14:01 CET

    BYD, Globex Mining, Nordex - When does it really start?

    • Mining
    • Commodities
    • Electromobility
    • renewableenergies

    Climate change is one of the greatest challenges of our time. With tighter targets for climate neutrality and billions in subsidies, politicians are stepping on the gas. Renewable energies are the only way to achieve a CO2-neutral world. Despite the long-term rosy prospects, companies in the peace energy sector have corrected sharply in recent months, with even market leaders posting losses of over 50% on the stock market. This represents a new opportunity to participate in the energy transition over the long term.

    Read

    Commented by André Will-Laudien on November 23rd, 2022 | 10:06 CET

    GreenTech takes off again: BASF, Meta Materials, Nordex, JinkoSolar - Is there a quick comeback?

    • Innovations
    • Technology
    • GreenTech

    For the rapid expansion of "renewable energies", the traffic light coalition has presented a 500-page package of measures this year. With its help, the share of alternative power generation is to be increased as quickly as possible from the current level of around 50% to about 80%. According to reports from Berlin, the necessary approval loops with authorities will be drastically shortened. However, a prerequisite for this would be the population's approval for any encroachments on property in terms of distance regulations, noise and residential quality. It is here where things are currently hitting a snag because the government's bill includes extensive encroachments on nature and major sacrifices by residents in order to serve the common good. But with no one pushing forward on this issue, skepticism about quick success is warranted. Who are the big beneficiaries of climate technology progress?

    Read