Shares on a high: Up to 300% with Canopy Growth, Super Micro Computer, Aspermont

Aspermont: GBC Research sees 300% opportunity

Can Aspermont Limited shares multiply? Yes, say the analysts at GBC Research. Their price target is EUR 0.04. Aspermont shares are currently trading at around EUR 0.01. The optimism is quite understandable, as there is much to suggest that Aspermont's share price will rise: Attractive niche, strong growth, debt-free, and completed consolidation.

2023 was a year of consolidation for the B2B media company for the raw materials industry. Nevertheless, Aspermont increased its turnover by 3% to AUD 19.20. Particularly pleasing: at AUD 11.1 million, over 70% of revenue is now recurring. At 57%, the gross margin is high and expected to increase to over 60% in the current year. Last year, a joint venture was terminated and written off. The net result fell accordingly from AUD -0.4 million to AUD -1.7 million in 2023. Other non-profitable products or events were also discontinued and new managers were brought on board. Aspermont now wants to focus on profitable and high-growth areas. According to GBC, this should already pay off in the current year. The analysts expect Aspermont to return to double-digit growth and increase revenue from AUD 21.56 million in the current year to over AUD 31 million by 2026. The EBITDA margin is expected to rise to 19.9% during this period. Free cash flow of AUD 4.30 million is expected as early as next year. Aspermont is currently valued at around AUD 40 million. The complete GBC study is available for download here.

Canopy Growth: Share intoxicated by German fantasy

Canopy Growth has shown in recent weeks that a share can quickly double due to turnaround fantasies. From April 1, 2024, cannabis will be officially recognized as a non-narcotic in Germany. The euphoria among investors is correspondingly high and shares in the sector have risen significantly in the past two weeks. Canopy Growth shares, for example, have more than doubled to EUR 6.89. However, an all-time low of EUR 2.80 was only reached at the beginning of March. Around three years ago, the share was still trading at over EUR 300. This puts the rise in the share price into perspective.

In any case, Canopy sees itself in a good position to benefit from legalization in Germany. In a recent interview with Bloomberg, Canopy's CEO said that the German cannabis market could grow from the current EUR 500 million to EUR 2.5 billion in just a few years. In the medium term, he believes that the market in Germany could even reach a volume of EUR 5 billion. Canopy is active in Germany with the Storz & Bickel vaporizer brand and with Canopy Medical for medical cannabis products. The legalization of recreational cannabis and the expected growth of the medical cannabis market in Germany would offer exciting growth opportunities.

Canopy manager Tara Rozalowsky comments: "The reclassification of cannabis as a non-narcotic is a critical step for patients and physicians, enabling them to better explore cannabis as a viable treatment option for a broader range of conditions. We are excited to continue serving the medical community with high-quality cannabis products that meet patients' needs, and we look forward to further expanding our already leading presence in the German medical cannabis market."

Super Micro Computer: Further strong growth expected

After the price fireworks that have driven Super Micro Computer's share price up by over 250% in the current year alone, it has been consolidating at a high level over the past two weeks. The AI boom is driving the Company's turnover and has even led the share into the S&P 500. Analysts are confident that the shares can do even better - but the air is getting thinner. JP Morgan has added the Super Micro Computer share to its coverage and recommends it as a "Buy". However, the target price of USD 1,150 is not far off the current level. The Company is one of the major beneficiaries of the rapidly increasing demand for data centers in the field of artificial intelligence.

The analysts expect the market for "AI inferencing workloads" to multiply from USD 41 billion in 2023 to USD 283 billion by 2028, which should benefit Super Micro and enable the Company to grow by 43% per year over the next four to five years.

Aspermont is a hot turnaround story. After last year's consolidation, the Company is poised for double-digit growth and rising margins. GBC's price target shows the direction it could take. In recent weeks, Canopy has demonstrated that bombed-out shares can quickly gain several hundred percent. However, doubts about the sustainability of the price increase are justified. Companies in the sector have not really been able to benefit operationally from the market openings in Canada and the US. Super Micro has excellent growth prospects. However, it must capitalize on them to justify its valuation of over USD 58 billion.