May 6th, 2022 | 11:49 CEST
TeamViewer, Nel, mm2 Asia: Analysts see upside potential
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
mm2 ASIA - Operational rebound and NFT fantasy
mm2 Asia Ltd. is probably known to only a few investors in this country, but it is worth looking at. The Singapore-based media and technology company focuses its core business on media content production, distribution and sponsorship. mm2 holds majority stakes in, among others, the award-winning virtual reality, visual effects and computer-generated imagery studio Vividthree Holdings and an event production and concert promotion company. With its subsidiary mmCineplexes and the acquisition of Cathay Cineplexes Pte. Ltd., mm2 Asia is also one of the most important operators in the region, with 26 cinemas in Singapore and Malaysia. Based on media content, the booming market of NFTs is the next growth area for mm2 Asia. Certified and tradable digital objects - Non Fungible Tokens (NFTs) - are the next big thing in the blockchain and crypto world. Even Elon Musk recently drew attention to NFTs on Twitter. While it was more in good fun, all the topics Musk comments on benefit from his reach.
In any case, the outlook for mm2 Asia is rated as bright by analysts at UOB Kay Hian. The Company is expected to increase sales to the equivalent of around EUR 90 million in the current year. Last year, it was only EUR 51 million due to Corona. The EBITDA operating result is expected to rise from EUR -22 million to EUR 34 million. That would return mm2 Asia to the profitable growth path of the pre-Corona period. In 2024, sales and EBIT should already be EUR 184 million and EUR 72 million, respectively. The market capitalization of the Company, which is also traded on the Frankfurt Stock Exchange, is currently around EUR 113 million. From the analysts' point of view, the planned NFT marketplace is promising. The online marketplace for digital assets called "Metaviva" will focus on media content popular in Asia. The analysts draw a comparison to the global NFT marketplace OpenSea. The latter currently has a valuation of USD 13.3 billion. The potential valuation of Metaviva - dependent on the success of the market launch - could therefore be substantial. The analysts recommend mm2 Asia as a buy and name a price target of EUR 0.079. Currently, the share is trading at EUR 0.036 in Frankfurt.
Nel: More than 50% price potential
The share of Nel ASA currently also has considerable upside potential. At least Goldman Sachs comes to this conclusion. The analysts recommend the shares of the hydrogen specialist as a buy with a price target of NOK 22. The Nel share is currently quoted at NOK 13.55. The relatively weak quarterly figures are seasonal and should not be overrated. Positive is "the change in the fair value of financial instruments". Presumably, this refers to Nel's holdings, such as Everfuel. Most recently, Everfuel had won a contract to build a hydrogen refuelling station for heavy-duty vehicles in Wuppertal, Germany. In recent weeks, Nel has also reported numerous - albeit somewhat smaller - orders. This week, a customer from India placed an order. Nel will supply an alkaline electrolyzer worth around EUR 2 million to the customer in the middle of next year. The analysts at Canadian bank RBC are also convinced by Nel. Their assessment is "Outperform", and the price target is NOK 24. However, in order to achieve these price targets from RBC and Goldman, Nel must land larger orders in the coming weeks and months.
TeamViewer surprises positively with Q1 figures
TeamViewer was one of the big disappointments in 2021. But now, the software company has surprised positively and analysts are expressing their views accordingly. Due to high demand from major customers, so-called billings in the first quarter of 2022 increased by 12% to EUR 163.5 million. Adjusted for special effects (EBITDA) declined by 8% to EUR 83.2 million, but analysts had expected a stronger decline. In addition, the outlook was confirmed. TeamViewer expects an increase in sales to EUR 565 to 580 million in 2022 and an EBITDA margin of between 45 and 47%. Through partnerships such as with Google, SAP, and Microsoft, the key account business is expected to gain further importance. Following the figures, analysts were generally positive: Goldman Sachs raised its price target from EUR 16.50 to EUR 17. The corporate customer business had been solid, but it was too early to assume better predictability in general. Therefore, the rating is still "Neutral". JPMorgan recommends the TeamViewer share with "Overweight" and a price target of EUR 18. DZ Bank has lowered the fair value of TeamViewer shares from EUR 20 to EUR 17 after the quarterly figures but left its rating at "Buy". From the analysts' point of view, the software company's figures are a first step towards regaining lost investor confidence. The reason for the price target reduction is the increase in the weighted average cost of capital.
Nel continues to be a darling of investors and analysts, but larger contracts need to be won to justify the market capitalization. TeamViewer finally seems to be on the right track operationally. The same is true for mm2 Asia. If sales and profits increase as analysts expect, the stock is anything but expensive.
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