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August 3rd, 2022 | 10:50 CEST

Varta at EUR 64 or EUR 102? Will BioNTech and Kleos Space make the breakout?

  • Space
  • Biotechnology
  • Electromobility
Photo credits: pixabay.com

The stock market environment is currently friendly, and technology stocks, in particular, are in a recovery rally. Investors are driven by the hope that inflation will weaken and that an end to the interest rate increase cycle of the US Federal Reserve will at least become foreseeable. If this were the case, we would not be in a bear market rally, but at the beginning of a new bull market. But not all stocks have been able to benefit from the good mood in recent weeks. Rightly so? In the case of Varta, the answer is yes - the Company shocked shareholders with a profit warning on Saturday. However, the price targets of analysts diverge significantly. The BioNTech share is unusually quiet. There is positive news from the Company itself and its partner Pfizer. With the quarterly figures next week, an attempt to break out of the sideways trend could take place. Kleos Space is also currently making this attempt. Investors are positioning themselves with the high-tech company in preparation for the next milestone.

time to read: 4 minutes | Author: Fabian Lorenz
ISIN: VARTA AG O.N. | DE000A0TGJ55 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , KLEOS SPACE CDI/1/1 | AU0000015588

Table of contents:


    Uwe Ahrens, Director, Altech Advanced Materials AG
    "[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG

    Full interview

     

    Kleos Space: Investors position themselves for the next milestone

    Security and surveillance have been growth markets not just since the Russian war of aggression on Ukraine. Surveillance from space is probably one of the most exciting topics. And that brings us to Kleos Space. Founded in Australia, the Luxembourg-based high-tech company develops satellites to help fight global environmental, security and economic problems by collecting and analyzing radio frequency signals from space for geolocation. The high-quality data sets are sold to government organizations and commercial companies as 'Data-as-a-Service' on a subscription model. Kleos currently has a global pipeline of more than 260 partners, including ministries of defense, national security agencies, coast guards, sanctions agencies and data aggregators. Most recently, a partnership with the US Navy was announced.

    "Data is the foundation for all decisions. Our recent agreement with the US Navy is an excellent example of a government user engaging early with unique data sets like ours to quickly develop innovative solutions to military challenges that enable faster decision making," said Kleos Space CEO Andy Bowyer as part of the Q2 update release. The Company also published its goal of achieving positive adjusted EBITDA as early as the second half of 2022. At the same time, the Company is still in the build-out phase of its satellite network. So far, 3 of the planned 20 satellite clusters have been launched. Cluster number 4 is scheduled to be launched into space in October as part of a rocket launch by Elon Musk's SpaceX. Funding for further missions has also been secured through a USD 10 million corporate action. Accordingly, the share has reacted positively in recent weeks, rising from EUR 0.25 to EUR 0.33. However, there is still room for improvement up to the 52-week high of EUR 0.60. Against the background of the exciting future prospects and the emerging profitability, the current market capitalization of AUD 88 million does not seem too high.

    Varta: EUR 64 or EUR 102?

    The expansion into electromobility electrifies Varta shareholders. But the Company is making slower progress on this path than expected. It has still not reported a major cooperation, and then last Saturday also lowered its forecasts for the current year. Accordingly, the Swabian battery manufacturer expects sales of between EUR 880 and 920 million (previously at least EUR 950 million). EBITDA is expected to be between EUR 200 and 225 million. Previously, EUR 260 to 280 million had been targeted. In a first reaction, Warburg Research downgraded the Varta share from "Buy" to "Sell". The price target was reduced from EUR 95 to EUR 65.50. Due to the high investments in the development of the production of V4Drive cells for e-cars, there is a need for capital. Hauck Aufhäuser also significantly reduced the price target from EUR 84 to EUR 64. The recommendation was also previously "Sell". It said that market conditions are currently deteriorating further and therefore reduced estimates for 2022 and the coming years.

    Goldman Sachs is less disappointed with Varta. The original forecast was ambitious; therefore, the adjustment did not come as a complete surprise. Although the share is burdened for the time being, the analysts continue to recommend buying. The price target was left at EUR 102. According to the experts from researchanalyst.com, Varta has now disappointed for the third time in a row. They demand that the Varta management respond more to the market's expectations and explain the status quo in the field of e-mobility in more detail.

    BioNTech: Dividend yield is now at an attractive level

    It has been quiet around the BioNTech share in recent weeks. This could soon be over and the share may even break out to the upside. It was recently announced that BioNTech, together with US partner Pfizer, have started the Phase 2 study of the efficacy and safety of a next-generation vaccine candidate to protect against COVID-19. The vaccine will initially be tested on approximately 200 individuals in the United States. The goal is to achieve a longer-lasting and broader immune response.

    Then partner Pfizer also beat analysts' expectations with its quarterly figures. The Company generated nearly USD 9 billion in revenue from the COVID-19 vaccine alone, which was more than expected. For the full year 2022, Pfizer expects revenues of USD 27.7 billion from vaccine sales. As a result, BioNTech is also likely to report strong quarterly results next week. These are to be published on August 8. Analysts should then also have their say again. At the beginning of July, Deutsche Bank published an update on BioNTech shares with a hold rating and a price target of USD 180. The share is currently trading at just over USD 160.


    Share prices are currently developing positively across the board. BioNTech has not benefited from this so far, but this could change next week. Kleos Space shares should also continue to increase as the launch of the fourth satellite cluster approaches. Varta has lost further trust and must finally publish convincing news on its expansion in the field of electromobility.


    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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