Next share price jump? TUI, Aixtron, and Desert Gold

Desert Gold: New high for the year soon?

Positive drilling results and a rising gold price are the two most important triggers - alongside takeover fantasies - for the Desert Gold share. In an interview with the news portal "kitco.com", analyst David Brady described gold as the "anti-dollar". He believes the precious metal is only at the beginning of a strong upward trend. His initial price range is USD 2,700 to USD 3,000. But in the long term, there is much more to come. He believes that prices of USD 5,000 and even up to USD 10,000 per troy ounce are possible. Countries such as China and Saudi Arabia are not the only ones working to end the supremacy of the US dollar. At the same time, the world is drowning in debt. Gold and silver are the only solid stores of value (zum vollständigen Interview).

Exploration companies are traditionally a lever on the gold price. Accordingly, Desert Gold shares should benefit disproportionately from a bull market in gold. What makes the share particularly exciting at present is that the current resource is disproportionate to the low market capitalization of around EUR 10 million, and the resource is set to increase further.

Desert Gold has secured a real gem with the SMSZ project in West Africa. The indicated and inferred mineral resources total 1.1 million ounces. In the current year, the resource is to be expanded through a drilling program with a scope of 3,750 meters. The gold is located near surface in this region, making it inexpensive to extract. The preliminary economic assessment (PEA), which is currently being prepared, should provide concrete cost and revenue figures.

Overall, there should be a lively news flow in the coming months. In early 2024, investors saw just how quickly the share price could rise. The share price more than doubled within a few weeks. A similar development could be on the cards again if the news is positive - and the chances of this are good.

TUI: Off to the island?

TUI shares have been moving sideways since the end of 2023. Although there is currently positive news about the tourism group, this is not giving the share any momentum. TUI is brimming with self-confidence and may even want to buy its own island. As "Handelsblatt" has reported, the Company, leveraging the symbiosis of its two most profitable sectors, Tui Cruises and its hotel business, is considering purchasing an island. The business newspaper reports that management is discussing establishing its own island as a stopover for cruises. Although the plans are still very vague, joint-venture partner Royal Caribbean has shown that the model can work.

Of course, these considerations are not yet reflected in analyst estimates. Experts are also holding back with buy recommendations for the TUI share. UBS recently raised its target price for the TUI share from GBP 6.60 to GBP 7.0. The reason given was the insolvency of competitor FTI. TUI will benefit from this, gain market share, and earn more. As the extent of the impact on sales and margins is not yet clear, the analysts are conservative in their estimates. The TUI share is, therefore, a "Hold".

Aixtron: Buy recommendations after the profit warning

The Aixtron share is likely not for conservative investors. In the meantime, the share has lost more than 50% of its value since the beginning of the year. The share has recently recovered somewhat from its lows of around EUR 18 and is currently trading slightly above EUR 21.

Although the price targets were reduced following the profit warning, they are still at least 38% above the current level. Jefferies even expects the Aixtron share to rise to EUR 35. The growth prospects for the coming year remain positive. They, therefore, recommend the share as a "Buy". Deutsche Bank believes that the shares of the German mechanical engineering company could rise to EUR 31. The profit warning came as no surprise and has already been priced in by the fall in the share price. The order intake in the second quarter is positive.

The TUI share currently lacks triggers for a rise. The strong summer season and the insolvency of FTI do not seem to be enough for investors to pull the share out of its sideways trend. The triggers for Desert Gold are clear. A further rise in the gold price and positive drilling results could quickly send the share to a new high for the year. In the case of Aixtron shares, a bottom would be healthy following the profit warning. A short-term buy is therefore not advisable.