April 28th, 2022 | 13:00 CEST
BioNTech share price about to double? Varta and Meta Materials with newsflow, or not
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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.
Meta Materials: Science fiction becomes reality
Metamaterials seem to turn physics on its head and have remarkable properties. They have nanostructures and can, for example, guide light around an object, making it invisible. And there are not only optical metamaterials. There are also acoustic ones that manipulate sound, thermal ones in which heat conduction is directed, and mechanical metamaterials, for example, solids that behave like liquids. It sounds like science fiction, but actual products are now emerging. One of the pioneers in this field is Meta Materials.
The Canadians have developed a technology platform that uses artificial intelligence to produce high-performance functional materials and nanocomposites. The potential applications of the products are enormous - from electric vehicles to the Internet of Things, renewable energies, medicine and aerospace. In 2021, Meta Materials turned over USD 4.1 million, 264% more than the previous year. In addition, research and development is underway - 163 patents have been granted, and another 106 have been filed - and production capacity is being expanded. The Company is not yet making a profit, accordingly. Nor has there been anything to gain yet with the NASDAQ-listed stock. After peaking at USD 21.76 last summer, the share price fell sharply to USD 1.23. In the meantime, a bottom seems to have been found because, operationally, things are happening.
In April, Meta went from strength to strength. First, the acquisition of Plasma App Ltd. was announced. The purchase price of 20 million Canadian dollars (CAD) was paid in shares at CAD 1.86. The acquisition is expected to increase production capacity significantly, increasing speed and reducing costs. In addition, Plasma App has an interesting technology in the field of battery materials. Meta has also received an interesting order from a central bank for CAD 2.2 million - Meta's subsidiary Nanotech Security is developing a unique security feature for cash. Meta Materials is also stepping on the gas in terms of personnel. A new experienced executive vice president has come on board to head the engineering and electro-optical and infrared systems department.
In addition, George Francis, a manager with over twenty-five years of professional experience, has been recruited for the newly created position of Chief Information Officer. He will not only look after IT architecture and cybersecurity but will also look into the potential monetization of the data that Meta's new products are likely to generate. The stock has yet to react to the positive news flow, but that is likely only a matter of time.
BioNTech on the verge of doubling in price?
Shareholders of BioNTech have had little reason to rejoice in recent weeks. However, at least a bottoming out seems to be underway for the German biotech startup's stock. Previously, BioNTech had reported convincing figures and announced a share buyback and a special dividend. There should be potential for price swings in the coming weeks. The release of clinical data on the safety, tolerability and efficacy of a vaccine tailored to the Omicron variant is eagerly awaited. On May 9, BioNTech will also report on its operating performance for the first quarter of 2022. Most recently, Berenberg had also commented positively on BioNTech. Although the analysts have reduced the price target from USD 400 to USD 350, this would still mean more than a doubling of the price. Accordingly, they recommend the share as a buy. The Corona vaccine would continue to bring billions into the coffers, the product pipeline for infectious diseases is well filled, and the share is accordingly undervalued.
Varta: 250 million promissory note for growth
The Varta share is having a hard time bottoming out. This week, for example, it fell below the EUR 90 mark again. On March 31, the Group presented figures for the past fiscal year. There is currently a lack of positive impetus. Initially, the annual figures were not convincing. Varta increased sales by 3.8% to EUR 902.9 million in the past fiscal year. Adjusted EBITDA increased by 17.4% to EUR 282.9 million. In the current year, sales are expected to be between EUR 950 million and EUR 1 billion and EBITDA is expected to fall slightly.
However, the Company said the forecast is fraught with question marks due to Russia's war of aggression and the impact of Corona on customers. The hope for management and shareholders is the V4Drive for use in electric cars. To this end, Varta has raised fresh capital and placed a EUR 250 million promissory note loan. Varta CTO Rainer Hald: "The plan is to use the money to expand our lithium-ion business. One focus will be on building up production capacities of the large-format round cell. In addition, the capacities of the small-format cells will also be further expanded." However, concrete customers or partners in the field of electromobility are still not forthcoming. Most recently, Warburg Research reduced its price target for Varta from EUR 113 to EUR 110.
Strong nerves are needed on the stock market at the moment. But stocks like BioNTech, Varta and Meta Materials have future potential.
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