01. April 2021 | 06:00 CET
Ballard Power, dynaCERT, Porsche: Where are the best auto stocks?
The idea that automakers have no future is a pipe dream. The pandemic shows us: we want to see our loved ones regularly, make new contacts and interact with people. Our car is the key to getting us from A to B in an uncomplicated way. At the same time, however, this mobility must not spoil the next generation's future. Therefore, new developments around clean drives are important and necessary. We introduce three companies and outline the role they play in the mobility revolution.
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ISIN: CA0585861085 , CA26780A1084 , DE000PAH0038
Ballard Power: Hydrogen pioneer in an exciting niche market
Ballard Power is one of the pioneers when it comes to fuel cells. The Company was founded in 1979 and made a name for itself early on with buses equipped with fuel cells. The Canadian Company is now owned by the Chinese, which gives Ballard Power access to an important market. China electrified public transportation back in 2016. Ballard Power has also partnered with Western bus manufacturers, such as Alexander Dennis Ltd.
While rechargeable batteries are gaining traction in passenger cars, Ballard Power's focus on larger vehicles and even ships could fill just the right niche. The stock gained 180% in a year but has also been weakening for a month. The reason is that hydrogen is increasingly being recognized as a future technology, which will probably only generate significant sales in years to come. As inflation is currently becoming an issue again, the market is discounting future sales and sending the entire industry down on the stock market.
dynaCERT: When will the price target of CAD 2.20 be reached?
The dynaCERT share has recently also suffered from the waning hydrogen hype. The Company is not about fuel cells but rather hydrogen-based conversion kits that make existing combustion engines more effective and environmentally friendly. The patented technology is already in use in some vehicles in North America. dynaCERT has primarily selected municipalities and companies as its target group. Buses can be made "greener," or heavy equipment, such as in mining, can score with fewer emissions. Companies are under increasing pressure to become more sustainable, especially in the mining industry.
In recent weeks, dynaCERT has stepped up its sales efforts and is also looking to roll out its technology on a large scale. Earlier this year, Canadian analyst firm Haywood called the stock the sustainability opportunity for 2021 and set a price target many times higher than current levels at CAD 2.20. Since then, the price has calmed down. The Company continues to work in the background. The technology is interesting for the transition to e-cars or other alternative drives. Those who think anti-cyclically can get in without stress.
Porsche: Strong brand, clear strategy
Things are clearer at Porsche - the share has already risen sharply for this. The Company has strong ties to Volkswagen and therefore benefits from Lower Saxony's electrification strategy, which has been well received by the market. VW wants to map the entire supply chain around electric cars and their batteries. Porsche also already has electric cars on offer. The powertrains, which enable powerful acceleration, are a good fit for Porsche's vehicles, which have always been sporty.
The stock has gained more than 60% in the last three months and is currently trading near its long-term high, just above EUR 90. Car manufacturers from Germany are currently in demand as never before. The market is rewarding their strong brands and solid market position and pricing in future fantasies surrounding electromobility. Porsche is a clear hold. Although the share has risen sharply, it is still good for triple-digit prices.