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February 28th, 2024 | 07:45 CET

Strong price targets! Super Micro Computer, Bayer, Almonty Industries

  • Mining
  • Tungsten
  • chemicals
  • AI
Photo credits: pixabay.com

Is it time to invest in Super Micro now? Yes, say several experts. Despite the massive price rally, the AI share offers further potential. There are good reasons for this, and the target price is USD 1,300. There are also good reasons for the Almonty Industries share to perform well in 2024 and beyond. The Company focuses on tungsten, a scarce and coveted resource in Europe and North America. Sales and profits are expected to rise sharply, leading to a revaluation of the share. Analysts also see significant potential for Bayer shares. The spin-off of over-the-counter medications, including Aspirin, is expected to drive the share. However, there are some question marks.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: SUPER MICRO COMPUT.DL-_01 | US86800U1043 , BAYER AG NA O.N. | DE000BAY0017 , ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    Almonty Industries: On the path to a jump in sales and profits

    Almonty Industries is currently exciting - in terms of the chart, the operating performance and the sector. The shares of the tungsten producer with activities in Spain, Portugal and South Korea reached EUR 0.31 in September 2023 and have been on an upward trend ever since. The share is currently trading at EUR 0.42. According to the analysts at Sphene Capital, the Almonty share still has a lot of potential. Their price target is CAD 1.69. The reason for the optimism? Almonty's turnover and profits are set to increase substantially in the coming years. On the one hand, the new mine in South Korea is to start operations, and production is to be ramped up step by step. Additionally, the mines already in production on the Iberian Peninsula are also expected to contribute to growth.

    Almonty recently reported on the expansion in Portugal. Accordingly, the Company is expanding the Panasqueira mine to level 4 (L4) in the current quarter. By utilizing existing surface infrastructure and focusing on underground development, the opening of L4 will increase annual production and mine life. By expanding and optimizing the mine, Almonty expects to achieve an EBITDA margin of over 30%. In the update, Almonty also reiterated the strategic importance of tungsten and its own production capacity. Representatives of the US Department of Commerce recently visited the Panasqueira mine. Tungsten is in short supply outside of China and Russia, and Western industrialized countries, in particular, are desperately looking for reliable suppliers. With the opening of the new mine in South Korea, Almonty is set to become one of the major players, and the share could undergo a revaluation. For a personal insight into the management and the Company, we recommend watching the (recording of the presentation) from the 10th IIF investor conference held on February 21.

    Super Micro Computer: Soon at USD 1,300?

    In the current year alone, Super Micro Computer's share price has tripled. Is it still a good time to invest? Yes, says the US business magazine "Forbes", among others. Experts believe that short sellers in Super Micro will come up short. They cite three main arguments for further price rises. Firstly, Nvidia is buying servers from Super Micro. Nvidia recently exceeded Wall Street's expectations and emphasized that demand remains very high. In addition, Super Micro's liquid cooling products are in demand for cooling AI servers. Overall, Super Micro's financial strength and prospects are considered excellent.

    The analysts at Rosenblatt also believe that the Super Micro share price is far from exhausted. **They have raised their price target from USD 700 to USD 1,300 and expect the Company to achieve an average growth rate (CAGR) of 50% in the coming years. They also point to Super Micro's liquid cooling technology. It is a key factor for growth.

    Bayer: Price target of EUR 50

    While the Bayer share price remains below EUR 30 and thus at the same levels as in 2005, analysts are positioning themselves for the eagerly awaited Capital Markets Day on March 5. Significant measures are expected from the DAX company. The analysts at Bernstein Research are among those expecting the spin-off of the over-the-counter medicines business, including Aspirin. The operating outlook for the current year is likely to be very conservative. Nevertheless, the analysts have set a price target of EUR 50. The rating is "Outperform".

    DZ Bank had its say at the end of last week. They are also one of the Bayer bulls with a "Buy" recommendation and a price target of EUR 47. The analysts expect that Bayer will explain the Consumer Health and Crop Science division's spin-off during the Capital Markets Day. Both could then be floated on the stock exchange.


    The shares of Super Micro Computer remain a hot commodity. Investors must expect high fluctuations. Almonty, on the other hand, is working on a solid upward trend. Tungsten is in high demand, and the share should initiate a revaluation with the commissioning of the mine in South Korea at the latest. Bayer faces an uncertain future. A spin-off is perhaps the only way forward. However, whether the individual parts are worth more remains to be seen.


    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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