30. June 2020 | 16:14 CET
CENIT, SYZYGY, Triumph Gold - business models with upside potential
A well-diversified portfolio should always include different industries and regions. Depending on the investment horizon and risk profile, a wide range of investment opportunities are available on the capital market. In addition to well-known large companies, there are also interesting small companies that are on a growth path and may offer attractive price potential. Consulting, software and gold - and what else interested investors need to know.
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ISIN: CA8968121043 , DE0005104806 , DE0005407100
Forecasts, target price and rating confirmed
CENIT has been successfully active for over 25 years as a leading consulting and software specialist for the optimization of business processes in the fields of Digital Factory, Product Lifecycle Management (PLM), SAP PLM, Enterprise Information Management (EIM), Business Optimization & Analytics (BOA) and Application Management Services (AMS). Standard solutions from strategic partners such as DASSAULT SYSTEMES, SAP and IBM complement CENIT with established, proprietary software developments. The company is represented worldwide at 17 locations in six countries with over 700 employees. They work for customers in the automotive, aerospace, mechanical engineering, tool and mould making, financial services, retail and consumer goods industries, among others.
With the publication of the Q1 report 2020, CENIT AG is still showing a comparatively solid business development. On the sales level, the company shows a slight decline of -4.9% to EUR 39.23 million (previous year: EUR 41.24 million), which was accompanied by a decline in EBIT of -4.7% to EUR 0.81 million (previous year: EUR 0.85 million). In absolute terms, both sales and earnings development were comparatively constant, particularly as CENIT AG was also negatively affected by the Covid 19 pandemic in the first quarter. With the publication of the Q1 report, the CENIT Executive Board does not consider itself in a position to make a concrete sales and earnings forecast due to the currently difficult situation to assess. Nevertheless, the analysts of GBC Research confirm their forecasts from April 16, 2020, according to which they expect a 20% decline in sales to EUR 137.37 m in 2020. On the basis of this estimation they confirm their price target of EUR 18.10 per share and continue to assign a ‚buy' rating.
German companies continue growth course
SYZYGY is one of the leading consulting and implementation partners for the transformation in marketing and sales. SYZYGY creates, orchestrates and designs digital experiences and products for brands, companies and people. Strategy, products and activation are the central services of the group. Technology is the connecting and scaling element. The main focus of activity is on strategic consulting, conception and design, technical realisation of brand platforms, business applications, websites, hosting, digital campaigns and mobile apps. Customers include renowned brands such as AVIS, BMW, Commerzbank, Consorsbank, Daimler, Deutsche Bank, Kyocera, Lufthansa, Mazda, Miles & More, o2, Paypal, Porsche, Techniker Krankenkasse and Volkswagen.
As expected, SYZYGY's sales revenue in the first quarter of 2020 was only slightly down on the previous year, at EUR 14.93 million (PY: EUR 15.69 million). According to analysts at GBC Research, the effects of the increasing spread of SARS-CoV-2 are already visible here to a moderate extent. Furthermore, a decline in spending behaviour by customers is expected, particularly in the current second quarter of 2020. As in previous periods, the sales revenues of the SYZYGY companies operating in Germany rose again, by +6.3% to EUR 12.28 million (previous year: EUR 11.55 million). As expected, the -4.9% decline in sales was followed by a 23.9% decline in EBIT to EUR 1.10 million (previous year: EUR 1.44 million). The experts at GBC confirm their price target of EUR 9.25 per share and continue to assign a ‚buy' rating.
Personnel changes at the top
Triumph Gold Corp. from Canada specialises in the exploration and development of precious metal deposits. The company aims to increase shareholder value by expanding the regional Freegold Mountain project in Yukon, Canada. Yesterday, the company announced that Tony Barresi has resigned as Director and President. Barresi will remain with the company as a technical advisor. "We are thankful for the contributions Tony has made at advancing all of our projects and fortunate for his continued support working with Jesse Halle, our VP, exploration," stated Chairman John Anderson.
In addition, Triumph Gold is pleased to announce that Mr. Brian Bower has assumed the position of Lead Director. Mr. Bower has more than 30 years of experience as an exploration and mining geologist and has been primarily active in British Columbia and the Yukon. "Mr. Bower's extensive experience in supporting strong technical teams were instrumental in developing projects like the New Afton mine, the Kemess South deposit, the Blackwater project and the Mount Milligan deposit in British Columbia. He has also worked on the Casino deposits advanced exploration program in the Yukon," said Mr. Anderson. "We are excited to have Brian join us as an active participant in expanding our team and rapidly growing the company beyond its exploration stage. This is a great step forward for Triumph Gold Corp."