Frankfurt Covid-19 has taught investors worldwide to fear: The stock markets have been on a roller coaster for weeks, and some sectors such as the aviation and tourism industries have been completely abandoned by investors. However, as in every crisis, the corona pandemic is not only about companies who are facing serious economic problems with the virus, but also about winners on the stock exchange whose prices are currently at record levels. An overview of four profiteers from the crisis – and the analysts’ assessment of whether it is still worth getting started with these papers.
The corona virus is currently forcing millions of people to stay largely at home. But what do you do in your own four walls during the long time? Obviously, many use the fact that most restaurants are not allowed to receive guests to have the lasagna delivered to their home by their favorite Italian. To do this, they rely more on digital food delivery services than ever before.
The food delivery company Delivery Hero continues to grow significantly and has slightly increased its sales forecast at the end of April. The proceeds in the current year are now expected to be between 1.1 and 1.2 billion euros, said the MDax-listed company in Berlin. So far, the company had forecast sales of 1.08 to 1.15 billion euros. The stock exchange likes to hear this.
Delivery Hero shares with brands such as Foodora, Lieferheld or Pizza.de temporarily hit a new record this week at a price of over € 85. Unlike delivery services like Deliveroo, Delivery Hero covers the mass market.
The customer will find hundreds of offers from Asian snacks to pizza service to burger roasters, all of whom deliver their own meals and are more likely to be located in the lower price segment. Delivery Hero also expanded its business in the corona crisis to include other goods such as food and medicine.
A concept that the analysts see as promising. Because Delivery Hero is a prime example of a “stay at home” share that tends to benefit from the current restrictions on public life in the fight against the consequences of corona.
The analysis house RBC classifies Delivery Hero’s papers as “outperform” with a target price of 95 euros. The recent solid results of the food supplier despite the corona crisis illustrated the attractive growth potential of the industry, wrote analyst Sherri Malek.
The British bank Barclays also sees the value as a core investment, analyst Andrew Ross wrote in a study. Most banking experts who regularly monitor Delivery Hero are also optimistic about the paper and are still setting price targets slightly above the current level. Twelve analysts advise buying, two to hold – but no one to sell.
“Cry for happiness” was a catchy slogan of the German online mail order company. In the meantime, this should also come very close to the mood of the Berlin Zalando managers. The online fashion retailer attracted masses of new customers in the coronavirus pandemic.
The number of new customers rose by almost 40 percent in April and thus more clearly than ever before in the month, said CEO Rubin Ritter this week without giving any concrete figures. Especially under 25-year-olds would have discovered the platform for themselves. At the end of March, Zalando had almost 32 million active customers.
In the current year, the Berlin-based company plans to convert this into an increase in sales of between ten and 20 percent, which is faster than the fashion market. Zalando is counting on an accelerated change from stationary to online trading: Many new companies have also joined the partner program, under which the brands can offer their products themselves on the Zalando platform.
Board member Rubin Ritter believes that the coronavirus pandemic will ultimately help accelerate the online shopping trend. It was a sure way to get dressed again. The outlook was celebrated on the stock exchange: the shares listed in the MDax rose by up to 12.8 percent to EUR 54.16. At just over 54 euros, the securities had reached their provisional high shortly after the stock exchange started in 2014.
Many banking experts are sympathetic to the paper. The US analyst Bernstein Research rates the stock outperform. The online retailer is back on track, analyst Aneesha Sherman wrote. The opening quarter was as expected, but the development was strong in April.
The analysis house Warburg Research leaves Zalando’s papers “buy”. The new outlook of the online retailer leaves some leeway for his estimates, writes Jörg Frey. JP Morgan experts raised the price target for the online fashion retailer from 34 to 40 euros. Her colleagues at RBC Capital Markets increased it from 50 to 62 euros. However, most banking experts who regularly monitor the paper disagree and set price targets below the current level. 15 analysts advise buying, 16 holding – and five selling.
A price jump of more than 25 percent – and that in the middle of the corona crisis? The shares of the Swabian software specialist Teamviewer have succeeded in this over the past few weeks. The start on the stock exchange was initially slow when the financial investor Permira was listed on the stock exchange in September 2019. For weeks, the stock bobbed below its entry level in autumn.
But that has long been forgotten. Because Teamviewer (WKN A2YN90) offers software that can be used to network computers and maintain them remotely. A service that many companies now urgently need because tens of thousands of employees work from their home office. The Göppingen-based software manufacturer is therefore one of the beneficiaries of the development that the companies restrict their travel activities.
Teamviewer had already spoken of very high growth rates in March due to additional demand for home jobs and expected an increase in billing of around 60 percent in the first quarter. However, due to the high level of uncertainty, the annual forecast was not raised. Now, however, the trend towards home work has accelerated worldwide in recent weeks.
The stock exchange is now celebrating this with a significant price increase. On Thursday, the Teamviewer share rose to a record high of EUR 44.80, then came back somewhat. This means that the profit since the initial listing at the end of September 2019 is a good 70 percent.
Berenberg Bank analyst Gustav Froberg sees further potential. He recently started evaluating the remote maintenance software provider’s papers and recommended buying them with a target price of 50 euros. By 2023, the entire market addressable for the software specialist should expand to 30 billion euros. At the same time, he sees Teamviewer as a leader in his segment.
In time for the Göppinger quarterly report on May 12, the US investment bank Goldman Sachs also raised its thumb. A study by Mohammed Moawalla classified the papers as a good buy. Even after the corona crisis, the share should benefit from the increasing trend towards digitalization and an increasingly decentralized working world. The title has already run a bit hot, but should be among the valuable stocks with further upside potential.
The opinion of the analysts, who according to Bloomberg regularly cover the company, is clear: All eight experts advise to buy – none to hold and no one to sell.
The corona virus has changed the lives of many people significantly. Many stay longer than usual in their own four walls – and at least want to make themselves as comfortable as possible there. Suppliers of shopping baskets including recipes are therefore among the profiteers of the pandemic. For example, the share of the Hellofresh cookbox mail order company from the Rocket Internet barn is currently unable to resist demand.
The Hellofresh company delivers cooking recipes and the corresponding ingredients for it in-house – which is currently getting on the nerve. The ingredients come home chilled including recipes as part of a subscription by parcel service. The customer has to cook himself, but the amount of food is packaged appropriately and the meal should be ready in less than an hour. That seems to be attractive to many people right now.
The growth in the second half of March “accelerated significantly”, the Berlin company said recently. Ironically, in the corona crisis, the company rose from the small-value index SDax to the Mdax of medium-sized German stocks in March. Shareholders react enthusiastically to the prospects. The paper more than doubled within six months.
However, the company’s forecasts for 2020 did not change for the time being. “From today’s perspective, society does not consider the uncertainties caused by the Covid 19 pandemic and the resulting effects on the 2020 financial year to be reliably quantifiable by either the global economy or society itself,” Hellofresh said. The share is therefore something for investors who are convinced that many customers will no longer be able to jump off the provider’s subscription system even if the exit restrictions – as planned – are relaxed and the restaurants reopen under certain conditions.
JPM’s analyst Marcus Diebel believes that the “penetration rate” of households still offers a lot of upside potential for the company. Most experts who watch the paper regularly are optimistic. Eight analysts advise buying, two holding – and no one selling.
More: Three strategies for investors to invest in stocks during the crisis