April 21st, 2022 | 12:57 CEST
Valneva, Power Nickel, K+S: The perfect mix for traders and long-term investors!
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"[...] China has become the manufacturing capital of the World, and because of its infrastructure, expertise and capabilities, Silkroad Nickel has strategically positioned itself to partner with Chinese companies in the Stainless Steel and EV industries [...]" Jerre Foo, Corporate Development Executive, Silkroad Nickel
Valneva - Decisive days
The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) is still meeting until this Friday regarding the approval of Valneva's COVID-19 inactivated vaccine VLA2001. The CHMP Scientific Committee has an important role and performs risk assessments of medicines used in humans that are to be approved throughout the EU.
The Austrian-French biotech company had announced the prospect of approval for the vaccine in the EU in April. The Company's main area of research is special vaccines. Besides Corona, Lyme disease and cholera fall within its scope of activities. The Valneva Corona vaccine was recently the first to be approved in the UK for use in people between the ages of 18 and 50.
For the brave, the hang-up is a good entry opportunity. Analysts believe the Company, valued at EUR 1.8 billion, has an upside potential of 27% over the next 12 months. The Company's valuation is moderate. The 2022 P/E ratio is 9 and drops to a low 5 in the following year!
Power Nickel - Undiscovered profiteer of the electromobility megatrend
Copper, lithium and cobalt are typically the battery metals that investors associate with the electromobility megatrend. Nickel, on the other hand, is often neglected. The metal is easily formable and plays a significant role as an alloying metal. Russia is one of the most important producing countries. At the beginning of March, shortly after the start of the Ukraine war, the nickel price shot through the roof within a few days. Even though the price trend has calmed down again, rising demand will increase the nickel price in the long term, and supply is also becoming tighter. Therefore, this is a promising constellation for (prospective) producers.
Power Nickel is focusing on a high-potential battery metal project in Canada. At the NISK project, a 5,000m drill program, already fully funded, will be carried out in the second quarter. The objective is also to publish a new NI 43-101 compliant resource estimate for the nickel project in the coming months.
The planned spin-off of the gold-copper assets should have a positive impact as it sharpens the equity story of the stock. Power Nickel will hold 80% in the new Company Consolidation Gold and Copper, with the remaining 20% to be "distributed" to existing Power Nickel shareholders. As a result, currently valued at only about CAD 17 million, the stock has several value enhancement levers. A detailed analysis of the Company can be found at researchanalyst.com.
K+S - Is the air getting thinner?
Most recently, the share of the Kassel-based fertilizer producer reached a new multi-year high of a good EUR 36. However, above the EUR 30 mark, most analysts have lowered their thumbs for the shares, which have multiplied in the last two years. The experts at Baader Bank and JPMorgan stand out positively with price targets of EUR 33 and EUR 44.50, respectively.
Due to higher prices and increasing demand, the Group recently adjusted its forecast for the current fiscal year upwards. The operating result (EBITDA) is expected to be between EUR 2.3 billion and EUR 2.6 billion in 2022; previously, the guidance showed a target range of between EUR 1.6 billion and EUR 1.9 billion. K+S plans to provide a detailed outlook for the year when it presents its first-quarter figures on May 11.
A detailed analysis of the prospects for K+S and the situation in the industry can be read here.
All three companies mentioned are benefiting from good conditions in their respective industries. Temporary price declines offer opportunities. In just a few days, courageous Valneva investors could be rewarded. K+S shares are also unlikely to have seen their highest prices this year. Power Nickel has the best opportunities within the trio. Numerous value drivers are in place, which should soon revive the share price.
Conflict of interest
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