18. August 2021 | 12:07 CET
wallstreet:online, Lang & Schwarz, MorphoSys - Long or Short?
(Neo) Brokers and securities trading banks have been achieving record profits for several quarters. Many new investors have discovered the stock market for themselves. The prices seem to know only one direction. In an environment with low-interest rates and, in some cases, zero order fees, this is leading to unprecedented transaction volumes. Who are the winners?
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ISIN: WALLSTREET:ONLINE INH ON | DE000A2GS609 , LANG+SCHWARZ AG NA | DE0006459324 , MORPHOSYS AG O.N. | DE0006632003
WALLSTREET:ONLINE AG - Analysts see more than 60% price potential
Analysts at GBC have raised the price target for the share significantly from EUR 29 to EUR 37.70 and confirmed their "buy" rating. That currently results in an upside of more than 60%! The analysts forecast strong growth and expect sales to increase by around 70% to between EUR 45 million and EUR 50 million in the current fiscal year. The operating result (EBITDA) before customer acquisition costs is expected to increase to between EUR 16.5 million and EUR 18.5 million. Considering acquisition costs, EBITDA of EUR 4 million to EUR 6 million is expected to be generated at the end of 2021.
The expenses for new customer acquisitions, which are currently putting pressure on margins, are related to the expansion of the transaction business. Since 2019, the Berlin-based Company has been on the market with the neobroker Smartbroker and has been highly successful. Soon, they want to have expanded the customer base to 200,000 investors. Advertising costs are incurred when acquiring new customers, but these are quickly amortized in the following years.
Neobrokers enable investors to trade very favorably, sometimes even without costs. This free trading for customers allows the number of transactions to explode and securities trading banks and brokers to make enormous profits. Neobroker receives for each trade of their customers, even if they trade for free, a fee from the settlers - platforms or brokers. Smartbroker differentiates itself again by offering low conditions and additionally a wide range of products. In addition, Smartbroker is interlinked with the wide-ranging portals of the wallstreet:online group.
Most recently, Thomas Soltau, Co-CEO of the majority holding wallstreet:online capital AG, acquired 175,000 shares. Previously, Supervisory Board member Marcus Seidel and CFO Roland Nicklaus acquired shares as part of the recent capital increase. It is a strong signal for shareholders. Investors should not misinterpret the sale of more than 300,000 shares by major shareholder André Kolbinger. Kolbinger is thus responding to the wish of institutional investors to increase the free float of the Company.
In a few days, things will get exciting. On August 23, the Company will announce its preliminary half-year figures and, one day later will invite shareholders to its virtual Annual General Meeting. The full half-year report and earnings call will follow on September 13.
LANG & SCHWARZ AG - Very exciting in the short term
The past fiscal year was by far the most successful in the history of the Düsseldorf-based Company. The record set in the final quarter has already been topped with the Q1 figures. The Company will publish half-year figures on August 20. The date is also exciting for another reason. The Company already reported some time ago that from that date, it intended to launch the share buyback program already approved in 2019. The Annual General Meeting to be held on August 26 is also important. In addition to a dividend increase to EUR 4 per share certificate, shareholders will also vote on a 1:3 stock split proposal.
The share price has multiplied in recent months in the wake of excellent business performance. As a broker and operator of a sizeable over-the-counter trading platform, the Company is a strong beneficiary of the higher trading volume on the stock exchanges. The stock market environment remains favorable. As a result, the second quarter numbers should also be good. A stock split combined with a share buyback program should in itself have a positive impact on the share price. Thus, from a timing point of view, the share is extremely exciting.
MORPHOSYS AG - Share knows only one direction
As an investor, you do not have to be a great connoisseur of chart technology to recognize that a chart that runs from the top left to the bottom right is not good. The MorphoSys share shows this exact chart pattern. The shares have lost 60% within 12 months, and the market capitalization has melted down to EUR 1.5 billion. In recent days, insider selling has increased, but all the news that the Company publishes fizzles out.
Most recently, the analysts at Deutsche Bank significantly reduced the stock's price target from EUR 116 to EUR 46 and changed their investment rating from "buy" to "hold". The experts miss drivers that could positively change the sentiment. In addition, the launch of the blood cancer drug tafasitamab (Monjuvi) is disappointing. Even though MorphoSys's partner Incyte recently announced a development and marketing agreement with InnoCare for tafasitamab in the China region, this did not help the share price.
Lang & Schwarz and wallstreet:online are likely to ride the wave of success of a good stock market sentiment and high transaction numbers for some time to come. Lang & Schwarz is exciting from a timing point of view (stock split, share buyback). wallstreet:online promises even greater potential, the analysts at GBC have formulated a price target of EUR 37.70, which corresponds to an upside potential of a good 60%. MorphoSys is currently out of steam, but the share remains an exciting turnaround candidate.