Multiple occupancy allowed - path laid out
Lax Restructuring Strategy
In the realm of the stock market, revamping an aged strategy isn't foreign. Take the case of this automotive supplier, who, in response to the industry's shift towards e-mobility, has been plunging funds in hopes of staying afloat. Not every investment was a spot-on decision. The management is now jettisoning less successful ventures. Two of these were sold, and two more production sites are set to shut down. The numbers reflect these changes. The Swabians are aiming to concentrate more on components than entire systems in drive systems, thereby reducing loss segments and overall costs. How does this metrically reflect? By 2025, this company should be raking in profits, having eliminated these losses. If the management nails it and the market rebounds, profits are poised toskyrocket in 2026. This strategy is the premise behind the split trading tactic. In the short to medium term, the 52-week high of 7.40 euros appears achievable for the price. Analysts from Warburg are bullish about this stock, setting a target of eight euros. The reasoning is clear. With the impending quarterly figures, the improvements will surface, pushing the stock's valuation to where it was a year ago. If the revamp is implemented successfully in the long term, the stock could potentially hit double-digit figures. As debts diminish, the margin potential gains significance in valuation. With sales around 1.7 billion euros and a margin hovering around six percent, prices above ten euros would be reasonable. Investors betting on this speculation set a stop-loss just below the 52-week low. By the way, you can discover the company that could double your investment in the HotDeal of this month's BÖRSE ONLINE magazine.
This Month's BÖRSE ONLINE:
Additional Topics in the Magazine:
Cologne's Service Gas:While sales in the engine business of this Cologne company remain sluggish, the expansion into the service sector is proving lucrative. The upcoming military contracts promise additional revenue opportunities (p.30)
China's Resurgence:Even in China, there's money to be made like Rambo. With government funds, the Chinese market's excitement is expected to be reignited. The stock exchanges in Shanghai and Shenzhen still have room to grow. Which stocks stand to benefit (p.38)
Escaping Price Slumps:The speculation regarding a merger of this company with the competition has fizzled, the stock has corrected, and is trading substantially below the industry average. Numerous paths could lead to higher prices (p.42)
Enriched in Russia:The stock markets are abuzz with speculation about which Western companies will reclaim their Russian holdings post a Ukrainian peace accord. Billions are at stake (p.44)
Doubling in Two Months:This Brent certificate is still available for less than five euros. Additionally, two gold and silver papers running till June, each offering a 94 percent potential (p.52)
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- The revamped strategy of the automotive supplier, focusing more on components than entire systems in drive systems, could potentially attract finance from investors who see profit potential in business areas with reduced loss segments and overall costs, thus increasing investments in the company by 2025.
- In the case of the service sector expansion by a Cologne company, successful business ventures may lead to substantial profits, especially if they secure military contracts promising additional revenue opportunities, as discussed in this month's BÖRSE ONLINE magazine.