17/05/21 12:27:45

Scale market report: Skid marks at a high level

After the sustained rally, there are currently setbacks in the growth market for smaller companies, apparently profit-taking. However, more and more analysts and banks are taking a closer look at the "little ones" - and often recommend buying them.

17 May 2021. FRANKFURT (Frankfurt Stock Exchange). The Scale segment is taking a breather. Exactly two weeks ago, the Scale All Share had reached a new all-time high of 1,807.44 points; on Monday morning, it is 1,744 points.

This means that the index, which tracks the shares of small and medium-sized companies, is still far ahead of the "big" indices such as the DAX, MDAX and SDAX: Over a six-month period, the Scale All Share is up 39 percent, and over a twelve-month period it is up 75 percent. By contrast, the DAX can only boast gains of 17 and 47 percent, the MDAX 12 and 38 percent, and the SDAX 18 and 53 percent. The Scale 30 selection index is somewhat weaker than the Scale All Share: it currently stands at 1,634 points, well below the February record of 1,789 points.

High flyers with setbacks

Cliq Digital, The Naga Group, Media & Games Invest - a whole series of investor favorites have lost ground recently. However, Cliq Digital (DE000A0HHJR3) remains the top performer over the last twelve months. The share price has still increased almost six-fold since May 2020. It is followed by the investment company Ernst Russ AG (DE000A161077), which specializes in ships, the manufacturer of battery components IBU-tec advanced materials (DE000A0XYHT5), the investment company Media and Games Invest (MT0000580101) and the eco-fund provider Ökoworld (DE0005408686). Their share prices have tripled or quadrupled since May 2020.

The former top performer The Naga Group (DE000A161NR7) has lost a lot of ground in recent months. The share price of the fintech, which offers a social trading and crypto trading platform, has almost halved since its February high of 9.25 euros, but has recently recovered somewhat to currently 5 euros. Naga also reported record growth in registrations, deposits and trading volumes for April last week.

Share price development Cliq Digital AG

New entry Apontis

A new addition to the segment is the pharmaceutical company Apontis Pharma (DE000A3CMGM5). The share was placed at 19 euros and currently costs slightly less at 18.05 euros. The company, which emerged from parts of the former Schwarz Pharma, intends to invest the funds from the IPO, among other things, in the development of new "single pills". According to the company's own information, Apontis is a leader in these products, which contain several combined generic active ingredients in a single capsule or tablet.

„Cliq with continued good operating development“

According to the analysts at Montega, the Cliq Digital share, which now only costs 30.60 euros after its all-time high of 41 euros, is far too cheap. They now even trust the share to 54 instead of 44 euros and continue to recommend buying. Montega justifies this, among other things, with "pleasing" quarterly figures and also remains optimistic for the future: "As demand for digital entertainment products should remain high and the first positive effects from the change in marketing in Europe are becoming apparent, Cliq should also continue its good operating performance in the second quarter."

Media & Games „continuing on a course of dynamic growth“

The share of Media and Games Invest, an investment company specializing in the media and gaming sector, is also weaker: After reaching an all-time high of 5.23 euros in April, it is now only 3.94 euros. First Berlin confirms the buy recommendation despite the capital increase, but now names a price target of 5.80 instead of 6.10 euros (currently x) due to the dilution effects. With its high financial strength, the company is now in a position to acquire two to three companies. This would result in considerable growth and earnings potential as well as extensive synergy effects within the Group.

GBC has also lowered its price target for Media and Games Invest due to the dilution effect, from 7.35 to 6.92 euros. In principle, however, the analysts also expect the dynamic growth course to continue. The capital measure also opens up great growth potential.

„EQS soon to be leading cloud provider for compliance and IR“

After reaching an all-time high of 41.40 euros in February, the shares of the compliance and investor relations solutions provider EQS Group have fallen sharply and currently cost 31.40 euros. However, analysts GBC expect the share price to recover and have raised the fair value from 31.70 to 40.40 euros. If the economic upswing continues, EQS can expect sales of 46 million euros in 2021 and 58 million euros in 2022.

GSC Research now rates EQS as "hold" instead of "sell" and gives a price target of 36 instead of 22 euros. According to the analysts, EQS is benefiting from the three megatrends of digitalization, regulation and globalization. The company is consistently pursuing its goal of becoming the leading European cloud provider for global corporate compliance and investor relations solutions by 2025, they say.

Further recommendations for scale shares

Analysis house/bankScale-CompanyRecommendationTarget price in eurosCurrent exchange rate in euro
SMC ResearchBlue CapBuy46.0026.40
GBCDeutsche GrundstücksauktionenBuy23.0019.60
SMC ResearchNoratisBuy30.6020.30
GSC ResearchScherzerHold3.152.94
SMC ResearchmViseHold3.502.41
SMC ResearchMensch und MaschineHold63.7058.20
SMC Research2G EnergyBuy102.6089.10
First Berlin2G EnergyAdd108.0089.10

from: Anna-Maria Borse
© 17 May 2021, Deutsche Börse AG