Close menu

July 3rd, 2023 | 07:45 CEST

Forget the heating law - 100% turnaround opportunity possible with Deutsche Bank, Volkswagen, BYD and Cardiol Therapeutics

  • Biotechnology
  • Banking
  • Electromobility
Photo credits:

When the major indices perform, some stocks unfortunately fall by the wayside. This can be due to a lack of attractiveness or the impact of megatrends such as Artificial Intelligence or Digitalization. Deutsche Bank is well on track for 2023, Volkswagen's low valuation is bound to attract attention at some point, and biotech company Cardiol Therapeutics is poised for a big jump. We take a closer look.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: DEUTSCHE BANK AG NA O.N. | DE0005140008 , VOLKSWAGEN AG VZO O.N. | DE0007664039 , BYD CO. LTD H YC 1 | CNE100000296 , CARDIOL THERAPEUTICS | CA14161Y2006

Table of contents:

    Terry Lynch, CEO, Power Nickel
    "[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel

    Full interview


    Deutsche Bank - Well on the way, yet unpopular

    The share price remains rock solid below EUR 10, but those who look at Deutsche Bank's figures will be pleasantly surprised. After years of restructuring, Germany's top institution has turned the corner. Earnings are rising strongly because, with the turnaround in interest rates, the lending business is now working again. Recently, investment banking has also started to move, and the high prices on the markets are helping to increase margins in asset management.

    Positive signals are now also coming from the US. There, the DBK-US subsidiary mastered the latest stress test with flying colors. According to the latest results, the major transatlantic banks demonstrate their ability to cope well with an economic crisis in an emergency. In the darkest negative scenario of the US Federal Reserve, which assumes a severe economic slump, all 23 institutions tested were able to maintain an average capital ratio of 10.1%; the requirement was at least 4.5%. Given the turmoil among US regional banks in the spring, which led to the collapse of some institutions, the regular stress check was a particular focus of attention this time. The US subsidiary of Deutsche Bank, which had failed the test several times before, came out with a strengthened capital ratio of 17.4%. This cushion should protect it from adversity.

    Unfortunately, there are still problems with Postbank's technical integration in Germany. The lengthy migration process is putting Postbank accounts into offline mode, customers are currently finding it difficult to use their funds, especially at weekends, and even cash withdrawals are not working consistently. Not a good report card for a Group that has been transforming itself into the modern era for 10 years now. Despite constantly setting new DAX records, DBK shares fell back to EUR 9.60 after an interim high of EUR 12.40. There are currently 23 studies on the Refinitiv Eikon platform. They calculate an average 12-month price target of EUR 12.67, so the turnaround in the share price should soon get off the ground.

    Cardiol Therapeutics - Focused on the heart

    Cardiol Therapeutics Inc (CRDL) is a Canadian biotechnology company focused on the discovery and clinical development of innovative therapies for the treatment of cardiovascular disease. The Company's promising product candidate, CardiolRx (cannabidiol), is a pharmaceutically manufactured oral solution formulation designed specifically for use in heart disease. Cannabidiol is known to inhibit activation of the inflammasome signaling pathway, which is known to play an important role in inflammation and fibrosis associated with myocarditis, pericarditis and heart failure. In December, the Company initiated a Phase II pilot study for the treatment of recurrent pericarditis, an inflammatory heart disease with symptoms such as stabbing chest pain, shortness of breath and fatigue that limit physical activity and quality of life for those affected. In the US, the indication of heart failure is expected to increase by 33% in the next few years. Almost 10 million people in the US already suffer from this life limitation.

    The CRDL share price made a 100% jump from CAD 0.67 to CAD 1.37 due to good research progress in the second quarter. On Friday, it was priced at CAD 1.18, with high trading volumes. "We believe we are dramatically undervalued," said David Elsley, CEO of Cardiol Therapeutics, in a recent interview with Manuel Koch. Indeed, with a market capitalization of only CAD 76.8 million, the stock is currently valued just above its cash position of about CAD 60 million. When brokers offer a capital increase, David Elsley smiles calmly because the Company is financed through 2025. Analysts at Leede, Jones & Gable and First Berlin see a weighted 12-month price target of around CAD 4.00. With more good news this year, the Canadians should become one of the top performers in the biotech sector.

    CRDL share price since IPO in 2019. A long road of research has been successfully completed and now appears to be providing the stock with a tangible turnaround. Source: Refinitiv Eikon as of 06/30/2023

    Volkswagen versus BYD - The technical counterattack is underway

    Two turnaround stocks from the automotive sector are currently attracting attention. On the radar, the largest Chinese manufacturer, "Build Your Dreams" (BYD), appears with a completed bottom formation at around EUR 25. The technology company had already reached a high of EUR 41.80 in July 2022, after which Warren Buffet also sold shares in the Company. The share price promptly stumbled and reached its preliminary low of EUR 20.65 in November 2022. Fundamentally, the Company continues to grow strongly at around 20% per annum and will achieve sales of more than CNY 1 trillion in 2026. According to studies on Refinitiv Eikon, the P/E ratio is expected to fall from around 30 to around 12. Of 32 analysts, 29 are positive, and the median 12-month price target is CNY 336 or EUR 42.50.

    German competitor Volkswagen is growing nowhere near as strongly but is analytically valued at a 2023 P/E ratio of only 4.5. In China, the Company has a top position in vehicle sales, but in Europe, the business has been declining for years. In direct comparison to BYD, the market capitalization is about 25% lower at around EUR 70 billion. Meanwhile, VW's sales reach over EUR 300 billion, 4 times the level of its Far Eastern rival. It seems that international investors prefer the high dynamics of Asian manufacturers over "Made in Germany". Still, with a 2025 P/E ratio of 3.7 and a 7% dividend, the VW stock must eventually reappear on the buy list. The 33 analysts on the Refinitiv Eikon platform expect EUR 159 in 12 months - a potential premium of 30%. In the 3-year chart, the saucer formation would be completed at around EUR 175. Time to collect!

    The stock market gives and takes. While AI-related papers are trading in the range of their multi-year highs, other sectors are currently neglected. However, there are opportunities in the automotive and biotech sectors that should be on one's radar.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Juliane Zielonka on September 29th, 2023 | 07:00 CEST

    Defence Therapeutics, Schott Pharma, Allianz Group: Focus on Innovation, Growth and Portfolio Optimization

    • Biotechnology
    • Pharma
    • Investments

    According to a recent study, biotech company Defence Therapeutics achieves twice the immune response of conventional mRNA therapies with its Accum® mRNA technology. That translates to fewer side effects and a more effective treatment. According to Precedence Research, the market size for mRNA therapeutics is projected to reach approximately USD 137.59 billion by 2032. It is expected to grow at a CAGR of 13.2% from 2023 to 2032. In order to inject these active ingredients, precision-fit medical vials are required, and Schott Pharma is ensuring this with their IPO launched on the German stock exchange this week, which could bring a valuation of around EUR 4 billion. The Allianz Group, on the other hand, is focusing on consolidation, selling its business in the Middle East and thus flushing around EUR 210 million cash into its coffers.


    Commented by Nico Popp on September 28th, 2023 | 09:05 CEST

    Germany - Car Country? The exodus begins: Mercedes-Benz, Volkswagen, First Phosphate

    • Mining
    • phosphate
    • Electromobility
    • Energy

    Cars still play a significant role in Germany. Many households have two vehicles, some even more. However, sales of new cars have weakened recently - the question of whether to buy a combustion engine or an electric vehicle, along with inflation, have deterred many buyers. German brand manufacturers are now being attracted to the US. There, they are enticed by subsidies and an intact market. Find out what the latest plans of Mercedes-Benz, Volkswagen, and others entail and which relatively unknown company could benefit.


    Commented by Fabian Lorenz on September 28th, 2023 | 07:10 CEST

    BYD unstoppable. Sell Varta shares? 200% with Almonty Industries?

    • Mining
    • Tungsten
    • Electromobility
    • renewableenergies

    Electromobility and the energy transition offer numerous investment opportunities along the value chain. Take BYD, for example. The Chinese company is increasingly becoming the e-car market leader. Could they soon even dethrone Tesla? That should make the stock interesting. And what about Varta? The battery manufacturer disappointed investors last year. Is the stock attractive now? Analysts continue to take a critical view of the Company. Almonty Industries is a different story. After the latest half-year figures, the experts at Sphene Capital advise buying. From 2024, sales and profits of the tungsten producer are expected to grow strongly. According to the analysts, the share could triple.