18. March 2021 | 09:30 CET
Kleos Space, PayPal, Airbus - Watch out: Performance rockets at the start!
You have to hand it to Elon Musk: Little of what he has tried has flopped in the end. He seems to have an excellent feel for feasible concepts. He was involved early on in PayPal, which came out of nowhere to become the world's most important payment service provider. Although not founded by him but protected very early on, Tesla developed under his aegis over the last 16 years from a startup to the world's most valuable car manufacturer. And Kleos Space? While not a company founded by Elon Musk either, it does have a business relationship with SpaceX, which depicts another field of activity for the go-getting and visionary "technoking." And as an established industry veteran, Airbus shares should not go unmentioned either. Who has the greatest potential?
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ISIN: AU0000015588 , US70450Y1038 , NL0000235190
KLEOS SPACE SA - Data and space: two goldmine growth fields combined in one Company
Founded in 2017 and currently valued at around EUR 74 million, Luxembourg-based satellite operator Kleos Space, with offices in the United Kingdom, the United States and Australia, recently announced the signing of an agreement with Elon Musk's SpaceX Group to transport 4 mini-satellites into space. Starting in mid-2021, these will help their 4 siblings already positioned there to monitor our planet, or rather the emission of high-frequency signals on our planet.
Why? Because practically all human communication today no longer works without electromagnetic waves. People, vehicles, airplanes and even ships can be precisely located and their movements tracked using these waves. The latter, in particular, are more exposed than ever to dangers on the high seas, such as with modern piracy. Radar tracking is often limited in terms of range, but it would still be good to detect impending dangers in advance. Here is where Kleos Space comes into play: with precise satellite positioning, dangers can be detected and avoided at an early stage. Of course, this is only one possible application for the Company's service. Very different customer groups, such as states, private companies, and NGOs, pursue a wide range of goals. Depending on data requirements, Kleos Space offers its services as-a-service with different subscription models. Already, the Company has collected a pipeline of over 100 potential projects.
Since the entry barriers for other potential players in such a technologically complex market are very high, the Company now has time to earn money, develop itself and plan its next steps. The approximately AUD 19 million that the Company was able to raise in the course of a capital increase in November should help with this. Investors who think the Company is as interesting as we do, or those who want to diversify their technology portfolio, should take a close look at Kleos Space's shares, which are also traded in Frankfurt. By the way, the First Berlin analysts did the same recently and confirmed a potential of 60% increase for the share price. Vincent Furia's appointment to the global engineering leadership team at Kleos was an interesting piece of news yesterday. Vincent was previously with Spire Global and has more than 15 years of industry experience in software and systems engineering.
PAYPAL HOLDINGS INC - "buy now, collect later" would be the perfect company motto
The name PayPal is also firmly associated with Elon Musks. And this, although he has long since divested his stake. Since then, the Company has evolved from a pure online payment service to the eBay Group's in-house payment solution to the world's largest payment service provider with more than 377 million customer accounts. PayPal has always relied on local and international cooperation. The Company has been working with MasterCard and Google for years to make the payment experience even easier, more convenient, and secure for its customers and continuously increase the number of payment points.
To finally improve its reach in Africa, the San Jose-based Company has allied with Flutterwave, a fintech Company founded in Nigeria in 2016 that targets SMEs in Africa and enables local merchants to operate internet platforms for shopping solutions. Flutterwave, which has since relocated its headquarters to San Francisco, had recently raised additional venture capital of USD 170 million to expand its business further.
Meanwhile, the PayPal share knows only one direction: upwards. The share price has more than doubled in the last twelve months. Although there have been some price setbacks in recent days, on the whole, analysts agree that the direction should remain the same for quite a while and trust the paper to average prices around USD 305, which corresponds to an upward potential of 25%. Investors, who would like to participate in the PayPal success story, should use the last days' price setbacks for purchases.
AIRBUS SE - a veteran of the industry
The third stock in the bunch has nothing to do with the Tesla founder - as far as we know - but with aerospace. Airbus is one of the leading global players in the industry. The Group develops, manufactures and supplies commercial aircraft, helicopters, military transport aircraft, satellites and launch vehicles. It also provides data services, navigation and secure communications solutions, among others.
A very well-known name when it comes to space travel is Ariane. This launch vehicle is emblematic of European space travel. Arianespace SA plays an important role. The Company was founded in 1980 and is the first commercial provider of launch services. The Company is primarily responsible for the launches of the Ariane and Vega rockets of the ArianeGroup. ArianeGroup is the joint venture of Airbus SE and the French Safran Group. However, Arianespace also carries out launches of the Russian Soyuz rocket. ArianeGroup holds almost 74% of the shares in Arianespace.
Airbus shares have resumed an upward trend after the steep fall during the Corona Crisis. Most recently, hopes of a resurgence in travel activity colored sentiment positively. In addition, there was good news from the helicopter sector. With prices around EUR 100, the largest European and the second largest global player is valued at around EUR 80 billion. A total of 24 analysts report on the share and come to the investment verdict "Buy" with an average price target of EUR 111 by a large majority. The US investment banks JP Morgan and Goldman Sachs are a good deal more optimistic, with price targets of EUR 120 and EUR 134, respectively. Airbus will publish its first-quarter figures on April 29.