February 15th, 2022 | 12:30 CET
Attention: Siemens Healthineers, Perimeter Medical Imaging AI, MorphoSys, Siemens - Riding the next hype with MedTech!
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Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Siemens Healthineers - Through the roof with Corona tests
The spin-off of Siemens Healthineers could not have gone better for Siemens. That is because the Company's former medical division can now adapt to the demands of the times with its own management and a sophisticated pandemic strategy.
With the publication of Q1 figures for fiscal 2021/22, the MedTech group is raising its annual forecast. This is mainly due to the particular business with COVID-19 rapid tests. Instead of EUR 200 million in sales, the Company now expects EUR 700 million in the pandemic tools sector. In the other sectors, the forecast remains unchanged. The new Group expectations are now for a sales growth of between 3 and 5% instead of the previous 0 to 2% and for adjusted earnings per share of between EUR 2.18 and EUR 2.30 (previously: EUR 2.08 to EUR 2.20).
However, higher procurement and logistics costs will impact the EBIT margin. The question now is whether the increased costs and prices can be passed on to customers? The share has lost a good EUR 10 from the high, around EUR 67.6, and the 2022 P/E ratio is falling from an estimated 25 to about 23. Despite remarkable growth in the pandemic, the share is thus still well priced, especially since the most significant increase in sales is due to the consolidation of Varian.
Perimeter Medical Imaging AI - Visualization at the highest level
Canadian diagnostics expert Perimeter Medical Imaging AI has made a strong push in the area of real-time visualization. The technology company's primary focus is on instrumental support for cancer treatment. Cancer is at the forefront of widespread diseases in an international comparison because no therapy promises 100% healing. Around 10 million people worldwide die of cancer every year.
Perimeter is revolutionizing cancer surgery with ultra-high resolution innovative imaging tools that use artificial intelligence to provide critical real-time data that has resulted in long laboratory run times in traditional treatment methods. Perimeter makes it possible to visualize tissue analysis and micro-structures on appropriate output devices during the procedure. The effectiveness of the examination and the procedure increases considerably as the length of treatment and patient stay decreases. The cost reduction potential in this area is in the range of several thousand dollars per patient.
At the end of January 2022, a large capital increase of 16.2 million shares at CAD 3.00 was closed. This is also associated with options at exercise prices of CAD 3.99 to 4.50. With a current share price of around CAD 3.40, the Company has accommodated the placement well and can hope for further exercises as the share price rises. With proceeds of over CAD 48.7 million, the next development steps will now be initiated. The high of CAD 5.20 from 2021 thus appears to be an achievable figure again for the current year. Due to the significant application potential of the technology, the share is certainly only at the beginning of its development.
For all investors, the IIF - International Investment Forum on Thursday, February 17, offers the chance to get to know 14 selected companies in more detail. Punctually at 15:45 CET the session with Perimeter CEO Jeremy Sobotta will start in English. A one-time registration for the event is available for all interested parties via this link.
MorphoSys - Not yet out of the cellar
We have recently reported more frequently on MorphoSys. The share price is currently trending from low to low, and in mid-February, it even fell below the critical support at EUR 26.20. The share is now only worth a third of what it was before the acquisition of Constellation Pharma. The figures for the last fiscal year will be announced as scheduled on March 16. Here it will be extremely exciting.
The biotech Company is targeting further growth with the important cancer drug Monjuvi in the USA for the current year. Net product sales are expected to increase to between USD 110 and 135 million. According to preliminary figures, Monjuvi generated revenues of USD 79.1 million last year. Due to the completed development phase, the gross margin for the drug is expected to reach an outstanding 75 to 80% this year. Research and development spending on other projects will likely increase in 2022, reaching EUR 300 million to EUR 325 million. As before, MorphoSys has a cost problem.
Investors should wait for the report date. Because if it turns out positive, you can re-enter the share on a secure basis, even if it then goes up very quickly. Before that, any position is highly speculative.
Siemens - Still under pressure with good figures
The Siemens Group is currently faring better. Three weeks before the Annual Shareholders' Meeting, the share price reached an astonishing EUR 157.9. Then last week, the preliminary figures for the first quarter were published. Earnings per share were EUR 2.04, up from EUR 1.67 per share in the year-ago quarter and about 10% higher than experts had previously expected. Sales were EUR 16.50 billion - an increase of 17.2% compared with the same period last year. At that time, EUR 14.1 billion had been generated. It appears that these figures were not enough.
There were some mediocre analyst comments in the wake of the figures, and the share price slipped back below the EUR 140 mark. But, out of 26 analysts, 20 are still positive, and the median price target is EUR 177.20 - which would give the German standard stock a good 25% potential. However, the always proclaimed race to catch up with the NASDAQ valuations will probably not take place in 2022 either. However, recapturing the highs for the year is within the realms of possibility.
Technological development is progressing rapidly. With the help of digitization, many research issues of the past can be solved. The companies of the former Siemens Group embody German engineering expertise; MorphoSys has probably yet to absorb the last acquisition. At Perimeter Medical Imaging, the medium-term growth traffic light is clearly on green.
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