June 29th, 2022 | 12:18 CEST
Buy or sell? Nel, Zalando, Aspermont under analyst review
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Aspermont: Back on course for growth and analysts advise buying
The Aspermont share appears ripe for a rebound. The digital media company is cash-flow positive, benefiting from the strong economy in the commodities sector and the resurgence of live events. For example, the Canadian company has around 30 media brands for the mining, energy, and agricultural sectors and provides over 3.6 million users in 190 countries with high-quality content. In order to make even more intensive use of its contacts, the Company is currently entering the fintech sector. For this purpose, the "Blu Horseshoe" platform was founded together with partner's Spark Plus and International Pacific Capital - Aspermont holds 44% in the joint venture. The idea behind it: Commodity markets are booming, and investments in the sector are correspondingly high. "Blu Horseshoe" is to be built into THE innovative digital investment platform in the sector. It could then be expanded to include the energy and agricultural sectors. On the stock market, Aspermont is valued at around EUR 30.94 million at a share price of EUR 0.013. Much too low, say the analysts at GBC Research.
The analysts see a target price of EUR 0.07 because Aspermont is growing significantly again. In the second quarter (fiscal year end is September 30), sales increased by 39% to AUD 4.8 million. That means that in the first half of the year, sales have already exceeded AUD 9 million. That is more than in the first half of 2019 (before Corona) and indicates a record year for the Company. Gross profit was AUD 3.1 million in the second quarter, putting the gross margin at a strong 65%. Cash flow and net income are also positive again. At the end of the first half, Aspermont had solid net cash of AUD 6.6 million.
Zalando: Price targets fall
Zalando's stock could do with a rebound. The value has lost significantly in recent months. In the current year alone, it went down from around EUR 65 to around EUR 25. Zalando last shocked investors on June 23 with a forecast reduction. Analysts are not yet in agreement about the prospects for the share. Hauck Aufhäuser continues to recommend the share as a buy but has reduced the price target from EUR 70 to EUR 55. The forecast was reduced more significantly than analysts had expected. However, Zalando had initiated measures to support profitability. Hauck remains convinced of the Company's long-term prospects. The analysts at Goldman Sachs criticize the Company's development, which is currently difficult to assess. Therefore, they have removed Zalando from the "Conviction Buy List" and reduced the price target from EUR 65 to EUR 40. HSBC sees a price target of only EUR 25. Following the profit warning, the analysts have adjusted their estimates. In their view, the online retailer is cheap even at the current price level.
Nel: Future prospects in the hydrogen sector are gigantic
With a market capitalization of around EUR 2 billion, Nel ASA is certainly no bargain. But the future prospects in the hydrogen sector are gigantic. This opinion is shared by Jefferies. The analysts recommend the Nel share as a buy with a target price of NOK 23 (price in NOK currently at 13.3). There will be increasing competition from China and India, but Nel has a strong position in Europe, and the analysts expect very positive supply-demand dynamics there. Fittingly, in Norway, the state-owned company Enova is funding five hydrogen initiatives with around EUR 64.4 million. From the funding pot, around EUR 14.4 million will go to Glomfjord Hydrogen. Nel holds a 23% stake in this company. Glomfjord Hydrogen plans to build a 20 MW hydrogen plant to produce green hydrogen.
Even analysts can be wrong. But studies can help to form your own opinion. For instance, Aspermont seems attractive because of its positioning in the booming commodity sector coupled with rebounding sales and earnings. Nel's sporty valuation is offset by the hydrogen boom. Zalando currently requires more courage for entry.
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