24. September 2021 | 13:13 CET
Deutsche Telekom, TalkPool, Nordex - Shares for a better future
At last, one might say, the brutal election campaign concerning the Bundestag elections taking place on Sunday is coming to an end, and Mutti is stepping down after 16 years in office. The successor is still open, but regardless of whether it is red-red-green, Jamaica or traffic light, the new government's focus is likely on climate protection. In addition to politicians, companies are called upon to contribute to the transformation to a climate-neutral world through new technologies.
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ISIN: DEUTSCHE TELEKOM ADR 1 | US2515661054 , Talkpool AG | CH0322161768 , NORDEX SE O.N. | DE000A0D6554
TalkPool with smart solutions
TalkPool, which has been operating since 2000 with its headquarters in Switzerland, combines future markets such as the Internet of Things, digitalization, 5G and green technologies all in one. At the beginning of the new millennium, TalkPool started maintaining networks and developing solutions that enable efficient communication between people and things. In the meantime, the Company has established itself in this segment as a partner of global telecommunications operators such as Deutsche Telekom, system providers and general contractors. The vision has been expanded over the years. By establishing new lines of business, TalkPool now aims to make buildings and networks greener, healthier and more efficient through Internet technology.
In addition to its core business, the Company, which operates in 15 countries, launched in 2014 in the IoT industry, where TalkPool offers smart building solutions to large real estate, construction and insurance companies. The Swiss Company is also involved in promising environmental monitoring projects. With its newly developed sensor technology, the Company sees itself as a market leader. The sensors monitor the indoor climate, improving air quality and reducing water and energy costs.
TalkPool also made its mark in the fight against Corona. With international partner companies such as Redytel, Netmore and Senseair, a pilot project was launched in Spain and Sweden to improve indoor air quality and support a safe reopening of the Company.
Strong figures and ambitious targets
Growth in all areas was evident in the second-quarter figures. Revenues climbed by 28%, and an EBITDA of more than EUR 380,000 was achieved. The positive margin development should be emphasized, which grew from 3.7% to 6.1%.
CEO Erik Strömstdt has already presented a Grand Master Plan until 2025. The goal, he said, is for TalkPool to become a leading technology provider of services for sustainable buildings and telecom sites based on smart IoT solutions. Thanks to improving market conditions, sales focus and sustainable technology, the Company is expected to grow tremendously in the coming years. TalkPool has set a 2025 revenue target of EUR 48 million with an EBITDA margin of 11%-14%. The Company's market capitalization, also listed in Frankfurt, is currently only EUR 4.77 million.
The price of the wind turbine manufacturer briefly slipped below the EUR 15 mark, but the attack of the bears was famously repelled. In chart terms, this is a strong sign of a possible trend reversal. After the successful turnaround, the air should only become thinner for the share price at just under EUR 20. The plus of 6% to EUR 15.30 was due to another large order from neighboring Poland.
The client for the wind turbines is the existing customer KGAL Investment Management GmbH & Co. KG. Accordingly, Nordex is supplying nine N131/3000 turbines for the 27 MW "Rywald" wind farm. Construction of the wind farm, located around 200 km from Warsaw, is scheduled to commence in the middle of next year.
The Hamburg-based Company's order books continue to fill up. That has not been the main problem in the recent past, but rather the old business with low margins. With the rise in raw material prices, the publication of the quarterly figures on November 15 should promise excitement. At current levels, however, one can venture into a trading position hedged with tight stops.
Analysts love the T-Share
The German Telekom share held the EUR 17 mark after the Evergrande shock at the beginning of the week. The Bonn-based Company's stock has now been boosted by two of the most established analyst firms. At an industry conference, US investment bank Goldman Sachs left its rating for Deutsche Telekom on the "Conviction Buy List" with a price target of EUR 26. The bank was confident about the growth and free cash flow prospects of mobile subsidiary T-Mobile US. In addition, management pointed to a strong, sustainable growth engine in Germany.
Also optimistic is the major Swiss bank UBS, which continues to leave the price target at EUR 24.20. Due to its market-leading position in Germany, the Deutsche Telekom share remains analyst Polo Tang's industry favorite.
New technologies are essential for a green, sustainable existential world. TalkPool's smart solutions connect multiple industries and hold long-term promise. Due to its market leadership, Deutsche Telekom, which counts TalkPool among its customers, is also a buy. Nordex offers at least short-term trading gains.