19. October 2021 | 12:03 CET
TeamViewer, Aspermont, Commerzbank - One step ahead
The digital age is massively transforming the economy and, as a result, businesses and their business models. Traditional models are being displaced, and new ideas are in demand. The Corona pandemic has highlighted the enormous shortcomings and accelerated the transformation to a digital world. Across industries, companies that embrace and implement this development are likely to be among the winners, while analog companies will lose their competitiveness and disappear from the scene.
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ISIN: TEAMVIEWER AG INH O.N. | DE000A2YN900 , ASPERMONT LTD | AU000000ASP3 , COMMERZBANK AG | DE000CBK1001
Aspermont - Transformation continues
With flying colors, the venerable media Company Aspermont, which owns publications such as Mining Journal and Mining Magazine that have a history of over 185 years, has been able to transform itself. After more than 5 years of transformation, an innovative digital company and the global leader in media services for the mining industry is now in place.
In the process, the management around the enterprising CEO Alex Kent found the database of 7.5 million registered decision-makers from the mining, energy and agriculture industries, which had been bulging over the years, just right to drive monetization with the introduction of an "Anything-as-a-Service" model. This service includes premium services such as data, statistics, research results, and participation in virtual or face-to-face events. Payment is made using a Netflix Plus model, which means there is a subscription model, but it can be customized, personalized, and topped up.
Significant economies of scale were already evident when the figures for the last quarter were announced. The gross margin climbed from 58% to a substantial 65%. All segments were in growth, but the data segment exploded disproportionately by 140% compared to the previous quarter. Aspermont intends to use the cash flow generated for further growth, especially for expansion into China. In addition, new business areas such as e-learning or the development of a blockchain should help achieve further growth. With a cash balance of around EUR 4.5 million at the end of June, there is an opportunity for inorganic growth.
The Company's entry into the highly profitable fintech business has been sealed through cooperation with partners Spark Plus, a management consultancy and specialist in roadshows for Asian companies, and International Pacific Capital, a Sydney-based securities trader established since 1987. Aspermont holds the lion's share of 44% in the joint venture, aiming to build a capital-raising platform for sophisticated investors and companies seeking capital.
Aspermont is a highly exciting Company with excellent prospects for generating further profitable growth. The share price of the Australians is currently consolidating in the range of around EUR 0.014. The stock market value is EUR 34.07 million. Should new impetus come from the Company's management, this should result in significantly higher price targets in the long term. The analysts at GBC Research see Aspermont as a buy candidate with a price target of EUR 0.063.
Commerzbank - No more branch network
Commerzbank held on to its bloated branch network for a long time, but now the trend is moving full throttle towards digitalization. By the end of 2024, the number of full-time positions will be reduced from around 39,500 to 32,000. The branch network in Germany will be cut from 790 to 450 locations. The DAX-listed Company plans to close 240 branches in Germany this year. The branch downsizing is to be completed as early as next year.
The new strategy, on the other hand, envisages call centers to replace on-site advice. Three advisory centers with up to 100 employees have opened in Berlin, Düsseldorf and Comdirect's hometown of Quickborn, with more in the pipeline.
From a chart perspective, the Commerzbank share has strong momentum. A breach of the resistance at EUR 6.31 would further brighten the chart. The next price target would be the high for the year at EUR 6.90.
TeamViewer - Fallen angel
A price drop from EUR 54.86 at the high to currently EUR 13.80 was too much for the supervisory board of TeamViewer AG. The software provider for remote access to, and remote control and maintenance of computers and other end devices, is now drawing consequences. The contract of CFO Stefan Gaiser, which expires in August 2022, will not be extended, and the search for a successor has already begun, the supervisory board announced on Sunday evening.
In addition, the Executive Board is to be expanded to 4 people through the addition of a new head of sales. In contrast, CEO Oliver Steil may remain in office despite criticism. His contract is to be extended until October 2024.
Following the publication of the resignation of the CFO, the investment bank Warburg Research left its rating on the TeamViewer share at "buy", and the analysts continue to see EUR 26 as the price target. Goldman Sachs, on the other hand, sees less potential. Following the key data for the third quarter, the analysts set the value at "hold" but cut the price target from EUR 30.00 to now EUR 14.50. In a published study, the earnings estimates until 2025 were also significantly lowered.
The digital transformation is underway across all industries and is existential for companies to maintain or even expand their competitiveness in the future. Aspermont is currently transforming from a publishing house to a fintech and has long-term potential. Commerzbank is also breaking new ground by unbundling its branch network.