Close menu

April 6th, 2022 | 10:46 CEST

Siemens Healthineers, Perimeter Medical, Siemens, SAP - After BioNTech, now the push for MedTech shares!

  • medtech
  • Biotechnology
  • Software
Photo credits:

The most significant positive share price developments in the last 12 months occurred in the biotech sector, especially among vaccine manufacturers such as BioNTech and Moderna. The stock market overlooked that pandemics, and the fight against them, offer short-term profit opportunities. The great battle against widespread diseases such as cardiovascular disease, cancer or other previously incurable indications progresses steadily. Their diagnosis and treatment require many types of technology, devices, processes, analysis tools, and intelligent software. Some methods certainly deserve the attribute "disruptive technology". We take a look at some blockbusters in the MedTech segment.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: SIEMENS HEALTH.AG NA O.N. | DE000SHL1006 , PERIMETER MED.IMAG.AI | CA71385D1078 , SIEMENS AG NA O.N. | DE0007236101 , SAP SE O.N. | DE0007164600

Table of contents:

    Siemens Healthineers - No negative impact from Ukraine crisis

    Siemens Healthineers is sticking to its forecasts for the current fiscal year despite the Ukraine war. CEO Bernd Montag has expressed confidence in the Company's ability to continue growing profitably even in a generally tense environment. Today, healthcare is no longer part of a normal economic cycle, as basic supplies of technical equipment and medical services have been taking up increasing shares of gross national product in recent years, as healthcare costs in the developed world continue to rise. And every country is planning to expand its medical infrastructure. The 2-5% increase in military spending in NATO does not mean that spending on medical care will be capped.

    It is also interesting to note that Siemens Healthineers is sticking to its contractual obligations to Russia. After all, the Russian people are not responsible for the war and, from this perspective, should continue to have access to the German high-tech manufacturer's medical achievements. For the current fiscal year 2021/22, sales are expected to grow by 3-5%, and earnings are expected to increase by more than double that rate. In our opinion, the share should now rise dynamically above EUR 60 with this confirmation. Otherwise, there is a risk of a technical decline to the previous breakout zone at around EUR 52.

    Perimeter Medical Imaging AI - Tracking cancer visually

    Around 10 million people worldwide die of cancer every year. One issue to be solved in cancer diagnosis all the way to the operating room is the clear identification of damaged cells or tissue. Current technologies lack the image resolution to detect microscopic features indicative of in situ disease. In addition, it takes several days to weeks to obtain a pathology report on the condition of the margins.

    Canadian diagnostics expert Perimeter Medical Imaging AI (PINK) specializes heavily in the area of real-time visualization. The technology company focuses on instrumental support for cancer treatment, primarily in ultra-high-resolution imaging systems. Artificial intelligence supports real-time analysis to derive a patient-appropriate decision already during the procedure. Cancer is still at the forefront of widespread diseases, as there is currently no form of therapy that promises a 100% cure.

    The Company marked an important milestone with 510(k) clearance from the US Food and Drug Administration (FDA) for the commercial launch of its flagship Perimeter S-Series OCT platform. Currently, Perimeter's clinical team is focusing on the ongoing pivotal study. The cost reduction potential in this area is several thousand dollars per patient. So oncology facilities, in particular, are likely to have a high level of interest in Perimeter's innovations.

    With the capital increase carried out at the end of January, the Company raised CAD 48.7 million, offering plenty of scope for further research and studies. Currently, the Company is participating in the 23rd annual meeting of the American Society of Breast Surgeons in Las Vegas, which should draw a lot of attention. The PINK share is quoted in Canada at around CAD 2.84, which brings the Company's market capitalization to CAD 176 million. From a purely technical point of view, the stock is currently trading at the lower end of the price range. Still, in a favorable scenario, the ongoing studies provide enough fuel for a significantly higher valuation.

    Siemens versus SAP - Which tech giant has the better cards?

    Investing in growth stocks on a larger scale focuses attention on the two DAX heavyweights, SAP and Siemens. Both have suffered a sharp drop since the start of the Ukraine crisis. The Siemens shares have fallen by a good 20%. The shares of SAP, the Walldorf-based software company, had already seen their sharp 30% decline at the beginning of the year. Since the outbreak of the crisis, there have been signs of a slight recovery.

    Analytically, the experts at Siemens expect sales to increase by just under 10% in the cross-section, and EBIT is expected to rise by more than 30%. However, it had already climbed by 32% in the previous year. It is safe to assume that the consequences of the war and the enormous increase in the cost of raw materials and logistics services have not yet been taken into account. If this were still the consensus, the P/E ratio for the current year would be a manageable 14.8, with a lush dividend yield of 3.4%. If the share price does not fall below the critical support at around EUR 115, Siemens has the potential to return to the upper end at EUR 135. Of the 14 analyst firms surveyed, only Barclays rates the stock as "underweight," while all others recommend "buy.

    SAP had delivered a major growth disappointment at the end of 2020. The share price plunged by 40% to EUR 92, and the subsequent recovery also ended at EUR 128. Currently, the share is at its technical stop line at just above EUR 100. In the business with Russia, the expansion in the cloud area will be discontinued, but the maintenance contracts from the installed ERP systems will continue to be fulfilled. The group does not make public how big the business in Russia is. The "Integrated Report of 2019" indicates that the Russian subsidiary represents about half a billion euros in revenue. According to earlier information, customers include the airline Aeroflot and the credit institution Sberbank. SAP is currently valued at 4 times revenue, which is historically low. Cloud, data security and cybercrime should continue to provide the Walldorf-based group with many years of growth after its 50th birthday. Of 14 available analyses, they all sound a Buy or Overweight! Conclusion: Pick up between EUR 95 and EUR 105!

    In the current crisis around Ukraine, good advice is expensive. The fact remains that companies from the medical equipment and service sector are needed more rather than less. Software also remains an ongoing topic in the course of advancing digitalization. Perimeter Medical Imaging should see a leap in growth in the current year.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Juliane Zielonka on December 7th, 2023 | 07:00 CET

    New developments in the healthcare market: Cardiol Therapeutics, Amazon and Bayer shares in focus

    • Biotechnology
    • Pharma
    • Healthcare

    Cardiol Therapeutics, a clinical-stage life sciences company focusing on therapies for heart inflammation, has secured a renowned clinic to advance its Phase II MAvERIC-Pilot study. This study, focused on combating recurrent pericarditis, promises to provide sound approaches to improve the quality of life of affected patients. Amazon has been dabbling in the healthcare sector since 2015 and is gradually conquering the telemedicine market. The path to telemedicine for Prime members, through the acquisition of companies such as "One Medical" and "PillPack", poses challenges. In contrast, Bayer is once again caught in the crossfire of legal disputes. The recent glyphosate trial loss before a jury in Philadelphia calls for a strategic realignment. At the same time, Bayer is attempting to provide new impetus in the area of women's health through a partnership in the field of hormonal contraception. Find out which development holds promise here.


    Commented by Fabian Lorenz on November 30th, 2023 | 07:10 CET

    Biotech Alert! Morphosys, Bayer, BioNTech and Defence Therapeutics

    • Biotechnology
    • Pharma

    Morphosys is not for the faint-hearted. After unclear study results, the stock gave up its annual gains within a few days. Analysts are also divided on what the future holds. On December 10, the study details will be released, hopefully shedding light on the situation. Bayer shareholders are currently seeing dark clouds. The stock plummeted from EUR 40 to EUR 30 in a short time. Is the dividend now at risk, or is the entire company in jeopardy? There is a slew of positive news for Defence Therapeutics. Can the stock break out of its sideways trend? A potential partner for the Canadians could be BioNTech. The German biotech favourite is working with full coffers on cancer vaccines. However, analysts remain cautious.


    Commented by Armin Schulz on November 29th, 2023 | 06:30 CET

    MorphoSys, Cardiol Therapeutics, Bayer - Where will the rebound start first?

    • Biotechnology
    • Pharma

    2023 was a challenging year for pharmaceutical and biotech companies. After the boom years of the Corona pandemic, many companies went into a tailspin. But not just vaccine manufacturers were hit; others were dragged down too. The markets are currently volatile. MorphoSys has seen a peak gain of 145% since the beginning of the year - but is currently only up 35%. Cardiol Therapeutics has also gained over 140% and has recently consolidated. The share is currently up 74% since the beginning of the year. Only Bayer's performance curve is pointing downwards. The share is currently worth 34% less than on January 2. We look at where the rebound will start first after the consolidations.