July 3rd, 2023 | 07:30 CEST
Better than Nvidia and Apple? Up to 150% price potential beckons for aifinyo, sdm and HelloFresh
Those who have bet on Big Tech companies this year are delighted with the high price gains. But haven't Nvidia, Apple, and even some DAX stocks run hot? A repeat performance like in the first half of 2023 is rather unlikely. Taking part of the profits is a good idea. And as a new investment, a whole range of companies are "still" in the shadow of Big Tech and AI hype. It is exactly here where there is also an opportunity. Today, we look at small and mid-caps where analysts say there is over 100% upside. Take aifinyo, for example. The B2B fintech published strong numbers for 2022 and the start of 2023 was also promising. sdm has also had a good start to the current year. Due to two acquisitions, revenue and profit are expected to multiply in the current year.
time to read: 4 minutes | Author: Mario Hose
ISIN: HELLOFRESH SE INH O.N. | DE000A161408 , AIFINYO AG INH O.N. | DE000A2G8XP9 , SDM SE | DE000A3CM708
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Author
Mario Hose
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
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aifinyo: SMC Research sees price potential of over 100%
SMC Research has renewed its buy recommendation for the aifinyo share. The price target is a proud EUR 36.80. Currently, the B2B fintech share is trading at around EUR 15. aifinyo recently published its annual report for the record year 2022. The start to 2023 was also promising: the technology company increased its transaction volume by 41.9% to EUR 105.86 million in the seasonally rather quiet first quarter. Gross profit, as one of the most important key performance indicators, increased by 20.3% to EUR 3.15 million in the reporting period. aifinyo also increased profits at all levels in the first three months of the year, with EBIT climbing by 58.5% to EUR 622 thousand and profit before tax by 63.7% to EUR 333 thousand. Taking into account the special costs for the acquisition of Billomat in the first quarter of 2022, growth was even stronger.
Around 10,000 entrepreneurs in Germany now manage their invoices, financing and cash flows on aifinyo's smart billing platform - and the trend is rising. The customer universe in Germany alone comprises around 4 million SMEs. For the full year 2023, SMC expects aifinyo to generate a gross profit of EUR 16.2 million and an EBIT of EUR 2.4 million. For 2025, analysts forecast a gross profit of EUR 24.8 million and an EBIT of EUR 7.1 million.
In an interview with echtgeld.tv, aifinyo CEO Stefan Kempf expressed his confidence that the Company will continue to grow at a significant double-digit rate in the coming years. The market potential is far from exhausted. In the future, for example, a business account with a credit card will also contribute to aifinyo's growth. The complete interview on YouTube can be seen: here.
sdm: +200% sales in 2023
The year 2023 is a real milestone for sdm SE. The security services provider generated consolidated sales of EUR 17.1 million in the first quarter. Earnings before interest, taxes, depreciation and amortization (consolidated EBITDA) were EUR 1.48 million. Consolidated net profit (after deduction of minority interests) was EUR 0.46 million. This means that sdm has generated more revenue and earned more in the first three months of the current year than in 2022 as a whole. The reason: with two acquisitions in the first half of 2023, one of the leading security service providers in the Munich metropolitan region has positioned itself supra-regionally and is expected to triple its revenue to close to EUR 50 million in the current year.
Currently, sdm is valued at just under EUR 17 million at a share price of EUR 4.50. The analysts at Sphene Capital think this is too little, and consider a price of EUR 8.40 to be fair. Due to the takeovers, they have significantly raised the sales and earnings expectations for sdm. As a result of the acquisition, they say, the sdm Group, with more than 750 employees, will move into the group of the top 20 security service providers in Germany. After the integration, sdm aims to increase its EBITDA margin to at least 10%. Further acquisitions in the coming years are also likely. For example, management has announced a medium-term revenue target of EUR 100 million. Analysts have raised the EBITDA estimate for 2023 from EUR 2.7 million to EUR 4.8 million. In the coming year, they expect sdm to achieve an EBITDA of EUR 5.5 million. Earnings per share are expected to be EUR 0.37 in the current year and EUR 0.47 in 2024. This puts the P/E ratio for 2024 below 10.
HelloFresh & TeamViewer: Analysts raise and lower their thumbs
HelloFresh and TeamViewer are also currently outside the focus of investors. Yet Jefferies still sees a good 50% upside potential for HelloFresh. The analysts expect that the cooking box shipper will have lower sales than expected in the second quarter, but there could be a positive surprise in terms of margin. Their price target is EUR 35.50. Currently, HelloFresh shares are trading at around EUR 22.
The TeamViewer share has gained a good 22% in the current year. From JP Morgan's perspective, this means that there is no more upside potential for now. The analysts are skeptical about sales in the second quarter. The declining revenue momentum could also not be compensated by a better than expected EBITDA. As a result, the analysts see only a fair value of EUR 13 for TeamViewer shares (currently trading at EUR 14.70) and therefore rate them as "Underweight".
Big Tech shares are clearly the focus of investors at the moment - preferably in connection with AI. But this will also change again. The time of the small caps will also come again, just like for aifinyo. The B2B fintech is growing strongly and is far from its all-time high of just under EUR 40. sdm is now playing in a new size league thanks to the acquisitions. This is still completely ignored on the stock market. In the case of HelloFresh, the US expansion will likely determine the further development of the share price.
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