May 12th, 2022 | 11:12 CEST
BioNTech, BYD and Desert Gold: Shares for the rebound
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"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Desert Gold secures financing and commences drilling program
The stock of Desert Gold Ventures Inc. has fallen from EUR 0.11 to EUR 0.06 within a few weeks. As a result, this could mean a good entry opportunity. Next week, management will present at the International Investment Forum (IIF). Registration for the digital investor conference is free of charge here. Operationally, things are going positively for the Canadian gold explorer. The Company has just received about CAD 1.5 million through a successful private placement. With this, the projects can be advanced. After the latest positive drill results, the stock shot up to CAD 0.20.
The funding will allow Desert Gold to move forward with its flagship SMSZ project in western Mali, which is close to a large Barrick Gold mine. New drilling has started. With this, the Canadians want to follow up on the promising results so far: 1.94 g/t gold over 30m and 2.75 g/t gold over 12m. In the current year, several drill passes with a total length of 20,000 meters are to take place and provide newsflow. Should Desert Gold succeed in building on its previous results, the current valuation of around EUR 10 million would appear to be anything but too high.
BioNTech with up to 50% price potential
The BioNTech share also seems to have room for improvement. The German biotech leader was able to convince with quarterly figures. In the first three months of 2022, the Company tripled its sales and profits compared to the previous year. The sales forecast for the full year of EUR 13 billion to EUR 17 billion was also confirmed. Goldman Sachs left its rating on BioNTech shares at "Neutral" after the numbers. The price target is USD 255. Based on the Corona vaccine, BioNTech's numbers were strong and beat analysts' estimates. Study data on the pediatric vaccine and several Omicron-specific variants are expected in the coming weeks. BioNTech also beat estimates from JPMorgan. The analysts have a price target of USD 183. Even if the Corona vaccine were to become less important, the Company is well-positioned in the oncology segment. For Jefferies, the fair value of BioNTech stock is USD 230. The analysts expect to see initial results on a flu vaccine later this year. Currently, BioNTech shares are trading at around USD 144 and EUR 138, respectively. Therefore, the price targets are significantly above the current level of the share. Why the assessments are still only "Hold" remains the analysts' secret.
BYD: HSBC raises price target
The BYD share benefits from a recommendation by HSBC. The analysts have raised the price target slightly from HKD 332 to HKD 342 and rate the stock as a buy - the share is currently trading at around HKD 233. Due to product strength in NEVs (hybrid and all-electric vehicles), sales volume and profit should pick up in 2022/2023. As one of China's largest electric car manufacturers, the Company announced that it would no longer produce pure internal combustion vehicles but only plug-in hybrids and pure electric cars. In addition, the Company produces the batteries itself and also has buses in its range. BYD is doing well with this: in the first quarter of 2022, sales increased by more than 60%. Profits even increased by 241%. The growth driver is the NEV sector. In the first three months, BYD sold 286,329 new energy vehicles - 400% more than in the same period last year. The model offensive has also taken off: Additional variants of the best-selling "Han" are available, and BYD plans to present a further 10 electric models in the current year.
The numbers are right for BYD and BioNTech, and analysts see significant upside potential. Desert Gold is anything but highly valued. If the drilling results are positive, the share price should have considerable upside potential.
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