November 25th, 2024 | 07:10 CET
Rheinmetall, ARI Motors, C3.ai – Groundbreaking news
Despite the geopolitical uncertainties, the leading indices, DAX and Dow Jones, were able to hold their own again and recover from the lows of the previous week. There were also positive signals regarding the numbers season. Chip giant Nvidia, for example, exceeded analysts' estimates for both revenue and earnings and once again reached a historic high. Additionally, fundamental reports from second-tier companies could significantly influence share prices in the near future.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
RHEINMETALL AG | DE0007030009 , ARI MOTORS INDUSTRIES SE | DE000A3D6Q45 , C3.AI INC | US12468P1049
Table of contents:
"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Rheinmetall – Potential underestimated
The tanks keep rolling for the integrated technology group, with all resistance levels relentlessly overcome. This is reflected in Rheinmetall's current stock performance, which has once again reached a new all-time high at EUR 619. Given the robust order backlog driven by the geopolitical shift, analysts see further upside potential for the Düsseldorf-based company's shares.
Experts from Deutsche Bank, for example, raised the target price for the DAX stock from EUR 680 to EUR 700, with the investment recommendation being confirmed as a "Buy". The experts identified a strengthened order book in the vehicle systems segment and the prospect of international growth from 2027 as key factors for the new target price, which offers a further 16% upside potential. This target reflects the analysts' increased revenue expectations and takes into account accelerated order management in key areas.
"We have been too conservative in our estimates of the sales growth potential that Rheinmetall signaled at CMD this week," analyst Christoph Laskawi wrote last week. "While we had expected EUR 16-17 billion, the Company is targeting a doubling to around EUR 20 billion by 2027."
DZ Bank analysts are even more optimistic after the recent Capital Markets Day and now believe that the defense contractor is even capable of achieving EUR 820 after a previous price target of EUR 657.
ARI Motors – Niche player with rosy prospects
With a valuation of just EUR 4 million, the Thuringia-based company has significant growth potential, especially given the upward trends in electromobility. The name "ARI" is derived from Japanese and means "ant", symbolizing the performance, maneuverability and versatility of the electric transporters, which are approved in Germany and have been specially designed for last-mile logistics.
The target group for the country's smallest electric transport vehicle, which can be delivered in 5 variants, is huge and can be tailored to any industry. In addition to delivery services in the city center, which are served by three-wheel variants, three four-wheel models offer attractive options not only for large hotel and leisure facilities, but also for city traffic. The Ari 901 model is particularly suitable as a transport vehicle for artisans, suppliers, landscaping companies and transport companies, as it has a payload of around 900 kg.
The current stock market price of ARI Motors is just EUR 0.40. With growth of 65% to EUR 3.139 million and a positive result in the first half of the year, the signs continue to point to further growth. The half-year figures do not yet include an order backlog of an additional EUR 4.29 million. It is no wonder that the analysts at SMC Research see massive growth potential for ARI shares. The target price was set at EUR 1.80, with the investment recommendation being "Buy".
For the current year, analysts forecast revenues of EUR 8.4 million with an EBIT of EUR 0.8 million. The experts also positively assessed the fact that the Company is largely free of bank debt and is currently financed mainly by subordinated shareholder loans, reflecting their confidence in the Company's future.
C3.ai – Underperforming AI stock with a milestone
Artificial intelligence has been a hot topic since the launch of ChatGPT, with investors seeing long-term growth potential in many companies. AI-related companies like Palantir and Nvidia have been among the stock market stars this year. In contrast, California-based C3.ai has been in a consolidation phase after the initial hype. However, this could soon come to an end.
A breakout above the USD 38.30 mark would result in a strong buy signal that could lead the chart into an exponential uptrend phase, with the next target being the 2023 annual high at USD 48.87. After that, the way would be clear for the historical high at USD 183.90. How quickly this can happen can be seen from the two values mentioned above.
The AI company founded by Tom Siebel reached a milestone last week. A comprehensive partnership with none other than technology giant Microsoft was announced at the Ignite conference. The alliance aims to usher in a new era of efficiency and innovation by combining C3.ai's AI-native enterprise solutions, including C3 Generative AI, with Microsoft's Azure cloud platform.
"This strategic alliance accelerates the adoption of AI within enterprises," emphasizes Thomas Siebel, CEO of C3.ai.
This collaboration aims to enable companies to quickly generate real value by utilizing advanced AI tools. These tools can, among other things, optimize supply chains, increase production efficiency, implement predictive maintenance, promote ESG goals and improve energy management.
Despite another all-time high, analysts still see significant potential at the DAX-listed Rheinmetall. C3.ai announced a comprehensive partnership with Microsoft and is on the verge of a significant turning point in terms of chart technology. At ARI Motors, analysts at SMC Research see potential for multiplication.
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