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April 10th, 2024 | 07:00 CEST

BASF and Cardiol Therapeutics recommended to buy! TUI share with momentum!

  • Biotechnology
  • Cancer
  • travel
  • chemicals
Photo credits: TUI AG

BASF shares have gained over 30% within six months. But is the rally in BASF shares slowly running out of steam? The fact that the share did not rise sharply yesterday despite a significant price target increase suggests this is the case. Many experts see little potential for further price increases. The situation is different for the biotech company Cardiol Therapeutics. The analysts at Canaccord believe that the shares of the specialist in cardiovascular diseases could perform by around 200%. Financing is secured until 2026, and important study data is due in the current quarter. The TUI share has been on a roll for several months now. Will the share continue to rise with the increase in temperatures? Management is certainly optimistic about the future.

time to read: 3 minutes | Author: Fabian Lorenz
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    David Elsley, CEO, Cardiol Therapeutics Inc.
    "[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.

    Full interview

     

    Cardiol Therapeutics: High cash ratio and high price target

    Ahead of important study data readout, analysts are positioning themselves for Cardiol Therapeutics. After First Berlin had already set a price target of USD 3.60 and thus saw a price potential of around 100%, the experts at Canaccord have gone one better. They believe the fair value of the specialist for diseases of the cardiovascular system is USD 6.00 per share. The stock is currently trading at USD 1.88. This values the biotech company at around USD 110 million. A high cash ratio must be taken into account here. As of the end of December 2023, the Company had a cash balance of approximately CAD 35 million. From the Company's perspective, they are fully financed to fund operations until 2026.

    But where does the analysts' optimism come from that Cardiol's share price will soon rise? Both expect positive study data in the second quarter. In early February, Cardiol announced that recruitment for the Phase II open-label study of its drug candidate CardiolRx™ for the treatment of inflammation of the pericardium (pericarditis) had been completed. In addition, CardiolRx™ received FDA approval as an orphan drug for rare diseases (Orphan Drug Designation). If the ongoing data is successful, expected in the second quarter of 2024, this will potentially shorten the path to approval.

    Cardiol is also making progress with CardiolRx™ for a second rare disease indication. Patient recruitment for the ARCHER trial of CardiolRx™ in acute myocarditis (inflammation of the heart muscle) has exceeded 50% enrollment and is progressing to be completed in the third quarter of 2024. The ARCHER trial is expected to enroll 100 patients at leading cardiac centers in North America, Europe, Latin America, and Israel. The Phase II trial will investigate the safety and tolerability of CardiolRx™, as well as its impact on myocardial recovery, in patients presenting with acute myocarditis.

    Shareholders can, therefore, look forward to a lively news flow throughout the current year.

    TUI: Welcome back to Germany

    Not only is the news flow currently positive for TUI, but the share is also picking up speed. In just 6 months, the tourism group's share price has risen by almost 70%. After facing financial difficulties and a botched capital increase in 2023, inclusion in the MDAX could soon follow. Since last Monday, the world's largest tourism company has once again become a German company on the stock exchange - the initial listing on the London Stock Exchange, which had been in place since 2014, has been discontinued. Inclusion in the MDAX could follow in June.

    TUI is also doing well operationally at the moment. TUI CEO Sebastian Ebel said on the occasion of the IPO in Frankfurt: "We want to expand our international presence, continue to grow profitably and support this growth with simple structures. We are entering the summer with healthy optimism." **In the current year, the Company expects at least as many customers as before the outbreak of the Corona pandemic in the record year of 2019, when there were around 20 million travellers. TUI aims to increase turnover by at least 10% to around EUR 23 billion in the current year. Adjusted operating profit is even expected to climb by at least 25% to EUR 1.2 billion.

    According to the analysts at Morgan Stanley, the TUI share still has room for improvement with these prospects. Their target price is EUR 10. The share is currently trading at around EUR 8.

    Will BASF shares rise to EUR 72?

    Analysts have less confidence in BASF shares. However, to the surprise of many, it has already performed well in recent months, with an increase of just over 30% in the past six months. With a price of almost EUR 54, the room for further growth seems limited. While Citigroup analysts raised their old price target from EUR 46 on Monday, their new target of EUR 55 is 'only' at the current level. Only Redburn sees significant upside potential for the chemical group. The relatively unknown analyst firm caused a stir with a price target increase from EUR 41 to EUR 72. Their rating was adjusted from "Neutral" to "Buy". The analysts believe that BASF is at the beginning of a new growth phase and, therefore, considers the Company significantly undervalued.


    Whether a sustainable growth phase is truly beginning for BASF may be critically questioned, considering the past 10 years. The lack of a positive price reaction also indicates that the share has already performed well. This also applies to the TUI share. Here, too, the operating performance is positive. The Cardiol Therapeutics share is currently consolidating at a high level. In view of the upcoming study data and the further positive news flow expected in 2024, this consolidation phase may quickly come to an end. In any case, the share does not appear expensive.


    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.

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    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



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