January 12th, 2022 | 13:21 CET
Deutsche Lufthansa, Kleos Space, BYD - The picture is brightening up
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The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Deutsche Lufthansa AG - Positive trends
Despite Omicron, travel restrictions, and further bad news regarding the Corona pandemic, Deutsche Lufthansa started the new year better than expected, even defying the overall correcting market. With the breakout above the EUR 7.20 mark, the Crane share could even complete its consolidation formation. A breakout above the EUR 8 mark would clear the way to the next prominent resistance at EUR 11.
Meanwhile, various analyst firms are still in disagreement. While Citigroup changed its rating for the DAX member from "Sell" to "Buy" and raised its price target from EUR 1.43 to currently EUR 6.50, the experts at Berenberg continue to see the airline as a hold candidate with a price target of EUR 6.30. The rapid spread of the Omicron variant has hurt the recovery in air travel, expressed analyst William Fitzalan Howard in an industry report.
Also of interest is a rumor out of Italy that Deutsche Lufthansa plans to take a stake in ITA Airways, the successor to the bankrupt Italian airline Alitalia. There have already been rumors of increased interest in the Italian counterpart in the past. According to the Italian daily newspaper "Il Messaggero," Lufthansa is considering "entering the shareholding structure of ITA" with up to 40%. ITA Airways has been looking for a strategic partner for some time. According to the magazine, a partnership should go through as soon as possible, ideally before summer. In addition to Lufthansa, however, the US carrier Delta has also thrown its hat into the investment ring.
Kleos Space - No impact on the mission
Kleos Space, a company based in Luxembourg, has dedicated itself to an absolute future topic. The market volume for satellite-based earth observation currently stands at EUR 4.1 billion and is forecast to grow by 6% annually. Space technology is used to help in the fight against global environmental security and economic problems by providing high-quality data sets that allow identifying hidden and illegal activities. The data is sold as a subscription in a data-as-a-service model. The more data the customer needs, the more expensive the subscription becomes.
The data is geospatial data obtained from satellites flying around the world. Kleos Space is the first Company to fly clusters of four satellites, each receiving radio transmissions from the ground. When data is received from each satellite, multilateration, a mathematical calculation, is performed that allows radio activity to be accurately located.
To date, 2 clusters have been launched into space, and the third was scheduled to go up in conjunction with the SpaceX Transporter Rideshare flight earlier this year. However, a leak in the transport vehicle's propulsion system caused delays. That meant that all satellites on board could not be launched. Six other companies were affected by the problem. Spaceflight Inc. is currently looking at alternatives for all satellites affected by the situation.
Disappointed, Kleos Space CEO Andy Bowyer said, "While the delay is disappointing, it has no long-term financial impact on the Company. The satellites are undamaged and are expected to launch with as little delay as possible, and most importantly, there is no impact on the revenue-generating life of the mission."
As early as later this year, the fourth cluster is expected to be launched into space. In the medium term, the Australian-based Company plans to have 20 Kleos clusters. The valuation, which currently stands at the equivalent of EUR 80 million, should then soar into other spheres.
BYD - Weak start to the new year
In contrast to Deutsche Lufthansa, the start of the new stock market year can be classified as a false start for the Chinese electric car manufacturer, BYD. The Company's price, financed by Warren Buffett, sank by just under 15% and should quickly test the broad support zone at EUR 26.
Last year's sales figures were strong with an increase of 75% with 730,000 units sold. NEV sales were up 232% YOY to 593,700 units. In December alone, BYD sold a total of 98,000 vehicles, of which nearly 95% were NEVs. According to a research report by CITIC Securities, BYD is expected to deliver 1.50 million NEVs in 2022.
On the other hand, the negative for the share price is that the Chinese government has cut subsidies for the purchase of e-cars from January 1, 2022. From 2023, the subsidies are then to be eliminated entirely.
Despite travel restrictions and the revival of the Omicron variant, Deutsche Lufthansa had a solid start to the year and significantly outperformed the DAX. In contrast, BYD is in correction due to subsidy cuts. At Kleos Space, there is further potential despite the delays in the launch of the new satellites.
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