Analysts' reports on listed companies serve investors as an external source of information. As a rule, research houses publish their recommendations in connection with financing, the publication of financial statements or in order to increase awareness. The information is usually freely accessible so that as broad a public as possible can form an opinion about the company. For orientation, analysts give a price target within a time window and a rating, which can be 'buy', 'hold' or 'sell', for example.
Significant margin increase expected
EQS Group (FSE: EQS) is a leading international technology provider for compliance and investor relations.
With EQS Group, several thousand companies worldwide fulfill complex national and international disclosure requirements, minimize risks and address stakeholders in a targeted manner. EQS Group is a digital full-service provider: Its products and services include a global newswire, a disclosure service, investor targeting and contact management, and insider list management. These are bundled in the cloud-based platform EQS COCKPIT to optimise the work processes of investor relations, communications and compliance officers.
The EQS Group continues to grow extremely dynamically and is gaining speed despite the Corona Crisis. Numerous factors are responsible for this positive development. The investment phase has now been completed and the company is focusing even more on profitable sales growth.
All in all, EQS Group is very well positioned and should achieve significant profit increases due to the high proportion of recurring sales and the high scalability of the business model, according to analysts from GBC Research. The experts have raised their price target from EUR 91.50 to EUR 125.00 and maintain their 'Buy' rating.
Opportunity for high profit margins
EXMceuticals (CSE: EXM) is a manufacturer of highly refined cannabis ingredients for the pharmaceutical, medical, nutraceutical and cosmetic industries.
The company is preparing to enter the lucrative pharmaceutical market for CBD and other regulated cannabinoids on a B2B basis over the next 12 months. The company is focusing on the establishment and expansion of its Portuguese and European operations, in particular its existing R&D activities and the planned industrial refinery for cannabis ingredients near Lisbon.
EXMceuticals has completed the detailed planning for the equipment of an existing industrial plant in order to create a pharmaceutical quality factory that operates on a large scale and is certified according to EU GMP standards.
The first production of medical ingredients from cannabis, including CBD, is expected once financing for the project is completed. Brightfield Group analysts forecast that the European CBD market will grow from EUR 373 million in 2019 to EUR 1.5 billion in 2023, with the global market expected to be worth EUR 14.4 billion by 2025. The analysts of Align Research have set a target price of CAD 0.958 in their latest study and assigned a 'Conviction Buy' rating.
Positive effects of COVID-19
Media and Games Invest plc (FSE: M8G) has a profitable and growing portfolio of companies in the games and digital media sectors.
The Group's primary objective is to grow through acquisitions, restructure and integrate companies into one large platform, and this strategy has so far produced a number of synergies including cost reductions, leverage and economies of scale. According to management, only a few competitors, particularly in the gaming sector, are pursuing this strategy, leaving room for acquisitions at a low price.
In the current COVID 19 pandemic, video games have once again proven to be crisis-proof and non-cyclical. As consumers had more leisure time, the demand for entertainment and thus for video games has risen sharply.
The uncertainty surrounding the COVID 19 pandemic and its impact on the global economy remains difficult to predict. Although GBC Research's analysts remain cautious due to the volatility of the video games business, they remain fundamentally positive and have raised their price target from EUR 2.10 to EUR 2.85 and maintained their 'Buy' rating.
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