Historically cheap, anything but second division - despite frequent predictions of a comeback, the catch-up race of small and mid-caps is still a long time coming. However, this does not apply to individual stocks, examples include Deutsche Rohstoff, JDC and Apontis.
15 May 2024. FRANKFURT (Börse Frankfurt). While the DAX continues to break new records, the second and third tiers are still struggling. At 1,200 points, the Scale All Share is currently barely above the level at the beginning of the year - and far below the highs of over 1,900 points reached in 2021. The MDAX is in a similar situation: it has also only managed a tiny gain since the start of the year, and the record highs of three years ago are a long way off.
The film production company Pantaflix (DE000A12UPJ7) remains the top performer in the Scale segment over the past twelve months - despite recent losses - with its share price tripling since May 2023. POS system provider Vectron Systems (DE000A0KEXC7), software company for platform solutions The Platform Group (DE000A2QEFA1), Deutsche Rohstoff AG (DE000A0XYG76), shipping company Ernst Russ (DE000A161077) and financial services provider JDC Group (DE000A0B9N37) also performed well with share price gains of between 44 and 109 per cent.
Pantaflix under pressure, good run for Deutsche Rohstoff
Pantaflix's highs are over. The shares of the Munich-based company, which is increasingly focussing on AI-generated entertainment, had climbed to a peak of EUR 2.52. The share price has now fallen to just EUR 1.62. Now it is just 1.62 euros. Even this is considered too high by the analysts at Montega, who recommend selling the shares and have set a target price of 1 euro. The forecast break-even in 2025 is of central importance, they say. However, achieving this depends on the success of the implementation of the AI focus - which is difficult for outsiders to predict.
By contrast, Deutsche Rohstoff AG (DE000A0XYG76) continues to perform well. The share price climbed to a new all-time high of 45.90 euros in April and is currently barely lower at 43.10 euros. The background to this is the sharp rise in the oil price this year. The Group published its quarterly results this Monday: The positive development from 2023 continued - as expected - in the first quarter.
JDC: sharp rise in share price since October
JDC is also doing well: on Monday of this week, the Wiesbaden-based company reported quarterly turnover of over 50 million euros for the first time, as well as a clearly positive development in the investment and insurance business. "The first quarter was very convincing. Never before have we made such a strong start to a year. We look forward to continuing like this," explained CFO Ralph Konrad when presenting the figures. According to shareholders, the share price is also likely to continue like this: the share is currently trading at 23.40 euros, compared to just 19.35 euros at the end of 2023 and even below 15 euros at the low in October. JDC offers a digital platform for insurance, investment funds and other financial products under the Jung, DMS & Cie, allesmeins and Geld.de brands.
The most traded Scale shares on Xetra and the Frankfurt Stock Exchange in April were Deutsche Rohstoff (€15.4 million) and 2G Energy (€15 million), followed by Cliq Digital (€8.5 million), Formycon (€8.4 million) and Data Group (€7.5 million). These five shares have also had the highest turnover since the beginning of the year, but in a slightly different order: leader 2G is followed by Cliq, Datagroup, Formycon and Deutsche Rohstoff.
Apontis share price expected to double
The pharmaceutical company Apontis Pharma (DE000A3CMGM5) continues to rise. The share is currently trading at 8.52 euros, almost doubling in price since the beginning of the year. Last week, Apontis reported sales growth for single pills combining two or three active ingredients and a positive net result in the first quarter and confirmed its forecast for 2024. Apontis Pharma is currently recommended as a buy by Hauck Aufhäuser, Warburg Research and Montega with price targets of EUR 16, EUR 20 and EUR 16.50 - all significantly above the current price. "Apontis has a first mover advantage. Single tablets are an innovation," writes Warburg Research. Apontis has the potential to achieve premium prices and attractive market shares.
Cliq halves its share price
By contrast, doubts have apparently grown about the business model of Düsseldorf-based streaming provider Cliq Digital. The dividend had already been cancelled. A profit warning was issued on 6 May, and on 8 May Cliq actually reported a significant decline in revenue and EBITDA in the first quarter "due to more difficult market conditions". The share price halved to 8 euros within a short space of time, and is currently barely any lower at 9.59 euros. Cliq was long regarded as a shooting star, with the share price rising from around 2 euros in summer 2019 to 39 euros in April 2022.
"A share success story 'Made in Germany', which has been giving rise to doubts for some time," writes Wirtschaftswoche with regard to allegedly dissatisfied customers. Pareto Securites, Quirin Bank, Montega and NuWays had recommended buying this year, with price targets of 60 euros, 80 euros, 60 euros and 65 euros. Pareto has since suspended its buy recommendation. In the Scale segment, Cliq is now one of the laggards in terms of share price performance over a twelve-month period, alongside the insolvent Helma Eigenheimbau (DE000A0EQ578) and the financial investor for commercial property Publity (DE0006972508).
Analysis company/bank | Scale companies | Recommendation | Target price in euros | Current exchange rate in euros |
SMC Research | Delignit | Buy | 9,00 | 3,40 |
SMC Research | Blue Cap | Buy | 40,40 | 18,40 |
SMC Research | The Naga Group | Speculative Buy | 1,40 | 0,78 |
SMC Research | 2G Energy | Buy | 34,00 | 26,20 |
SMC Research | Mensch und Maschine | Strong Buy | 69,00 | 45,50 |
Warburg Research | Laiqon | Buy | 10,00 | 5,48 |
BankM | Datron | Buy | 17,82 | 9,70 |
Montega | Nynomic | Buy | 47,00 | 29,50 |
Montega | The Platform Group | Buy | 9,00 | 7,44 |
GBC | Advanced Blockchain | Buy | 17,64 | 3,88 |
By Anna-Maria Borse © 15 May 2024, Deutsche Börse AG
Anna-Maria Borse is a financial and business editor specialising in the financial market/stock exchange and economic topics.
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