June 15th, 2022 | 13:47 CEST
Big bang for BYD and Rheinmetall: wallstreet:online insider buying
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"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
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.
wallstreet:online: Insider buying and analysts recommend
Business is booming at wallstreet:online AG. The Company is not only the largest publisher-independent financial portal operator in the German-speaking world but has also built up the leading neobroker (according to Assets-Under-Management) in recent years with its Smartbroker. The Handelsblatt editorial team recently voted it the best online broker of the year. After a strong year in 2021, wallstreet:online intends to continue growing in the current year. The management board expects growth of 25%. Revenues are expected to be between EUR 62 million and EUR 67 million. Operating EBITDA after customer acquisition costs is expected to be between EUR 10 million and EUR 12 million. Operating EBITDA before these costs is expected to be between EUR 16 million and EUR 18 million. CEO Matthias Hach: "2022 is a transition year for us. We are working at full speed on the launch of Smartbroker 2.0. After the market launch, we expect an increase in new customer numbers, as we will be able to address completely new target groups with our smartphone app and the new crypto offering. We expect around 55,000 new customers by the end of the year. We are very pleased with the development and are right on target in terms of growth." The growing importance of Smartbroker is also to be reflected in the Company name. At the Annual General Meeting next week, the name change to Smartbroker Holding AG is to be resolved.
The analysts at Warburg Research are also convinced of the Company's potential - and of Smartbroker, in particular. They recommend the w:o share with a price target of EUR 30 as a buy. The price targets of the analysts from Alster, Metzler and GBC are even somewhat higher. From the point of view of researchanalyst.com, too, there are currently "extremely attractive anticyclical entry opportunities in the long term". Company insiders also seem to be convinced of this. They have been buying noticeably for several weeks. Founder and major shareholder Andre Kolbinger and CFO Roland Nicklaus have bought w:o shares worth more than EUR 300,000 since the end of May.
Rheinmetall in the super cycle and a buy for Goldman Sachs
It is no secret that Rheinmetall has become an investor favorite since the Russian invasion of Ukraine. Even in the current bear market, the stock is holding up surprisingly well. And Goldman Sachs sees further upside potential. The analysts have included Rheinmetall in their coverage and recommend it as a buy with a price target of EUR 298. The stock is currently trading at EUR 203. The Company is the most important supplier to the German Armed Forces and thus one of the biggest beneficiaries of the new "defense investment supercycle" in Europe. Analysts expect Rheinmetall to increase sales by an average of 14% through 2026. Profits are expected to rise disproportionately during this period. The new "Panther" main battle tank is also expected to contribute to growth. Rheinmetall presented the Panther at the Eurosatory arms fair in Paris as the successor to the Leopard 2. Countries in Eastern Europe are reportedly already interested in the Panther. The Bundeswehr would, of course, be predestined as a reference customer. However, Germany and France have already commissioned Krauss-Maffei Wegmann (KMW), France's Nexter and Rheinmetall to develop a new main battle tank. According to media reports, Rheinmetall feels disadvantaged as a junior partner in this consortium. And the new tank is not due to be ready until 2035. Rheinmetall could probably deliver faster.
BYD: All-time high with Tesla deal
In German trading, the BYD (Build Your Dreams) share rose to over EUR 37 yesterday, marking a new all-time high. Not without reason: The Chinese electric car and battery manufacturer shines with strong sales figures and presents numerous new models.
This month sees the start of series production of the electric Seal sedan. The vehicle is said to have a range of 700 km. Prices start at around USD 31,000. There are already many pre-orders for the mid-range model, and up to 15,000 units can be built per month. Expectations are correspondingly high.
There is also exciting speculation in the battery sector. There are increasing indications that Tesla could soon order batteries from BYD. Specifically, it is said to be for Tesla's Model Y. Such a deal would be a real sensation. Analysts are correspondingly positive. In addition to JPMorgan, the Japanese bank Nomura has also confirmed its buy recommendation for the BYD share. Nomura's price target is HKD 360. Currently, the stock is trading at around HKD 303.
These shares convince analysts: Rheinmetall is in a super cycle, and Goldman sees further price potential. At wallstreet:online, not only four research houses recommend buying, but insiders are buying too. BYD is currently unstoppable, and a deal with Tesla would undoubtedly provide additional momentum.
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