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June 18th, 2024 | 06:30 CEST

Price jump at TUI! Bayer share price slumps! Globex Mining makes millions!

  • Mining
  • Gold
  • Commodities
  • Pharma
  • Travel
Photo credits: Nikola Corporation

TUI shares were among the day's winners on the German stock market yesterday. The tourism group benefited not only from positive analyst comments but also from the FTI bankruptcy. Can the share now end its months-long sideways movement? There are also good reasons for higher prices at Globex Mining. The mining incubator recently received CAD 3 million from the gold group Agnico Eagle - and that is not the end of the story. The latest analyst comments on Bayer shares are not very promising. Yesterday's DAX share price reaction was correspondingly negative. However, the management was optimistic.

time to read: 3 minutes | Author: Fabian Lorenz

Table of contents:

    Globex Mining: Agnico Eagle pays millions

    Explorer shares are seen as a lever for commodity prices. One problem is that companies often only have one or a few projects. As a result, the news flow is irregular and the share quickly loses attention. Globex Mining is different. The mining incubator from Canada has bought up numerous exploration projects or abandoned mines in recent years, building up a portfolio of over 240 projects. This covers a wide range of raw materials - from precious metals such as gold and silver to rare earths and lithium, the raw material for electromobility. Globex makes the projects available to other companies for exploration and receives cash, share options and subsequent royalty payments in return.

    Due to this special business model, risks are spread, exploration costs are eliminated, and there is a regular news flow. For example, a payment from Agnico Eagle Mines Limited was recently announced. Globex has received a cash payment of CAD 3 million from the gold group. This is the third of a total of four purchase price tranches for the 2021 acquisition of a gold project (Francoeur/Arntfield/Lac Fortune Gold Mines) in Canada. Should the project go into production, Globex will receive an additional royalty of 2% of the potential production from the property. As a result of the transaction, Globex also holds Agnico shares currently worth around CAD 2 million and Pan American Silver shares worth almost CAD 3 million. For classification: Globex, with all its projects, is currently valued at around CAD 50 million and appears to be anything but too expensive.

    Bayer: Share price recovery already over?

    Last week, Bayer's share price started to recover. This is over for the time being at the beginning of this week. On Monday, the share price slipped by more than 3%. Two analysts had their say yesterday. Both currently see little upside potential for Bayer shares.

    Barclays considers the DAX-listed company's shares to be fairly valued at EUR 28. The rating remains "Equal Weight." Although the Company is optimistic about the pharmaceuticals business, the analysts advise waiting for positive news flow from the division. Bayer management commented positively on the development pipeline, the opportunities of the new drugs Nubeqa and Kerendia, and the general business development in the pharmaceuticals sector.

    Berenberg also sees little potential for Bayer's share price at present. The dividend cut would strengthen the Company's financial cushion, and the legal success in the court case concerning the chemical PCB is also positive. However, the analysts lack positive impulses for the development of earnings. The analysts, therefore, continue to rate Bayer shares as a "Hold". The target price is EUR 30. The share is currently trading below EUR 27.

    TUI: FTI bankruptcy leads to rising profits

    While the Bayer share lost more than 3% yesterday, TUI's share price rose by more than 3%. It seems that the stock market has come to realize that the tourism group can benefit from the bankruptcy of its competitor, FTI. The aim is to market the hotel contingents previously blocked by FTI - particularly in Egypt and Turkey. This applies not only to the current summer season but also to the winter months.

    In addition, UBS raised its price target for the TUI share yesterday. The analysts still rate the share as "Neutral," but at least they now see the fair value at 700 pence (previously 660 pence). Due to the FTI bankruptcy, TUI should be able to increase its market share further. Accordingly, the earnings estimates have also been raised slightly.

    Since December 2023, the TUI share has traded between EUR 6 and 8. With the additional business due to the FTI insolvency, the breakout from the sideways movement could succeed, and a new upward trend could begin. Globex is also ripe for rising prices. The most recent million-euro payment alone - the fourth tranche is still pending - along with the stakes in Agnico and Pan American Silver, corresponds to around 15% of Globex's market capitalization. Despite the historically low share price, the Bayer share is not budging.

    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") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    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 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.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

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