01. November 2021 | 13:56 CET
wallstreet:online, Deutsche Bank, GFT Technologies - It should continue to improve here!
Low-interest rates, high inflation and economic growth, form the framework conditions that continue to speak for a positive stock market environment and rising share prices. The three following companies benefit from this in different ways and should also perform well in the coming year. Who is your favorite?
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ISIN: WALLSTREET:ONLINE INH ON | DE000A2GS609 , DEUTSCHE BANK AG NA O.N. | DE0005140008 , GFT TECHNOLOGIES SE | DE0005800601
wallstreet:online - Analysts: Almost 80% upside potential available!
The Company is the largest independent operator of wide-ranging stock market portals in the German-speaking world. With the launch of the neobroker Smartbroker, the Group completed an important step at the end of 2019. The transaction business now shapes the Company's equity story. The central task is to better integrate the financial offerings of Smartbroker into the stock market portals and thus leverage synergies and accelerate growth. The trading front end is to be completely revamped, and a Smartbroker app developed. At the end of the first half of the year, the Group had more than 187,000 securities accounts, of which more than 142,000 were Smartbroker customers, with assets under management of EUR 6.8 billion.
Smartbroker expanded its management team in recent months with high-caliber industry experts to support its dynamic growth and achieve its set goals. In addition, an application for the extension of the existing KWG license was submitted in the summer. Smartbroker differentiates itself in terms of the broad field of neobrokers, which offer investors, among other things, free stock trading by providing low conditions and additionally a wide range of products. The interlocking with the stock exchange portals should make the share certificates the winners on the German share price list.
The analysts of GBC still trust the share. The experts combine their buy recommendation with a price target of EUR 37.70. That is an upside potential of almost 80%. The Berlin-based Company had confirmed its guidance for the current fiscal year in the context of its half-year figures. Accordingly, the Management Board continues to expect an increase in sales to around EUR 45 to 50 million and an increase in operating earnings (EBITDA) to EUR 4 to 6 million.
Deutsche Bank - Profit-taking after good figures
Last week, the listed German industry leader presented its figures for the third quarter. The data turned out better than analysts expected. For the fifth quarter in a row, the Frankfurt-based bank was now able to report a profit. Investors nevertheless took profits. The share price is currently just above the EUR 11 mark, giving the Group a market capitalization of EUR 23 billion. The shares are still trading at a significant discount to the tangible book value per share, which according to the balance sheet, stands at EUR 24.46. The share price is still at a high level.
Rising sales and falling risk provisions led to profit growth in Q3 and the first nine months. Overall, the financial institution is making good progress with branch closures and job cuts, so meeting the communicated targets seems realistic. In the third quarter, the bank earned around EUR 0.6 billion before taxes; in the first nine months, the figure was as high as EUR 1.8 billion, compared with just EUR 0.1 billion in the previous year. For the current fiscal year, the 28 analysts currently covering the stock expect EPS of EUR 0.70, rising to EUR 1.27 in 2022. The dividend is also expected to increase from EUR 0.25 to EUR 0.36. Overall, the stock is attractively valued.
GFT Technologies - Another forecast increase
Last week, the specialist for the digital transformation of leading global companies in the finance, insurance and industrial sectors once again raised its forecast for the current year due to a significant increase in client demand. The Company now expects revenue of EUR 560 million (previously: EUR 550 million) and also holds out the prospect of a 20% increase in revenue for 2022. Operating profit is expected to grow disproportionately this year and next. For 2021, the benchmark is adjusted EBITDA of EUR 65 million (previously EUR 62 million) and profit before tax of EUR 40 million (previously EUR 36 million).
On the one hand, the market is growing for the solutions of the IT service provider and software developer, which offers in-depth consulting and development around forward-looking technologies - from cloud engineering to artificial intelligence and mainframe modernization to the Internet of Things for Industry 4.0. On the other hand, catch-up effects are now also occurring. Customers had cut their budgets recently. In terms of the chart, the share recently achieved significant success with the leap above EUR 40. The stock also has additional room for improvement in terms of valuation.
All the lights are green. The underlying conditions and the individual situation of the three companies described here suggest that share prices will continue to rise. In our opinion, the shares of wallstreet:online have a lot of potential. GBC analysts believe that the share has a potential of almost 80%. Looking at the Company valuation and prospects of Deutsche Bank and GFT, the shares are by no means overvalued.