Befesa SA

22.11.2024

Snowflake rises up to 25% + Bitcoin almost at $100,000 + Rotation in MDax + Carl Zeiss Meditec falls to low since 2018 + Berenberg rates CTS Eventim a 'Buy' - target 100 euros

The Snowflake $SNOW (-0,27%) shares rose 25% after the data analytics provider raised its full-year product revenue guidance and announced that it has partnered with AI company Anthropic to expand its cloud services.

The Bitcoin $BTC (+1,22%) reached just under $100,000 overnight and currently stands at $99,000.

What do you think, will Bitcoin reach $100,000 in November, or even today?

The US bank JPMorgan expects only a few changes for the next index review by Deutsche Börse at the beginning of December. While everything should remain the same in the leading Dax index, analyst Pankaj Gupta expects a swap in the mid-cap index below it, the MDax, where, according to him, industrial recycler Befesa will probably make way for drug researcher Evotec $EVT (-1,81%) will have to give way. Befesa $BFSA (+0,56%) would be relegated to the SDax, the index of smaller stocks. In the TecDax, Gupta expects that SMA Solar $S92 (+1,42%) will make way for the internet service provider Ionos $IOS (+1,19%) Deutsche Börse will review the indices of the Dax family (Dax, MDax, SDax and TecDax) on Wednesday, December 4, and announce any changes after the close of trading in the US. The changes will come into effect on Monday, December 23.

The downturn in the share price of Carl Zeiss Meditec $AFX (+2,61%) continued on Thursday with a new six-year low. The trend at the medical technology manufacturer has been pointing downwards since 2021, and this trend has intensified in the current year since March. At that time, the shares were still trading above 123 euros. On Thursday, the drop of over four percent pushed them down to 54.45 euros. This marks the lowest level since April 2018. With brief exceptions in August and late October and early September, the shares have been trading below the 200-day line, which is a popular long-term indicator for chart-oriented investors, for months. Jack Reynolds-Clark from RBC Research did not paint a good picture for the company at the beginning of November, downgrading it to "Sector Perform" due to uncertain demand in the various end markets. He emphasized that the consensus for 2025 depicts a rather optimistic scenario that is difficult to justify.

The private bank Berenberg has raised its rating for CTS Eventim $EVD (-0,67%) to "Buy" with a target price of 100 euros. The event organizer presented mixed quarterly figures, wrote analyst Gerhard Orgonas on Thursday evening. He cut his earnings estimates until 2026, taking into account integration costs and a slightly lower ticketing margin.

• CTS Eventim increased its consolidated revenue by 15.8 percent to EUR 2.027 billion in the first nine months of 2024. Adjusted EBITDA grows by 12.1 percent to EUR 322.7 million in the same period. The company's management is sticking to its forecast and expects a significantly higher Adjusted EBITDA for the full year compared to the previous year.
• CTS Eventim records a 22.9 percent increase in revenue to EUR 564.6 million in the Ticketing segment and a 13.6 percent increase to EUR 1.494 billion in the Live Entertainment segment. The company is also awarded the contract for the construction and operation of a new large arena by Wien Holding.

Friday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Schloss Wachenheim EUR 0.60

Cummins Inc. USD 1.82

CRH 0.35 GBP

Quarterly figures / company dates Europe

No time specified: Vinci Investor Day | Unilever Capital Markets Day

Economic data

• 08:00 DE: GDP (2nd release) 3Q calendar and seasonally adjusted yoy FORECAST: +0.2% yoy 1st release: +0.2% yoy 2nd quarter: -0.3% yoy calendar-adjusted yoy FORECAST: -0.2% yoy 1st release: -0.2% yoy 2nd quarter: -0.3% yoy
• 09:15 FR: Purchasing Managers' Index/PMI non-manufacturing (1st release) November FORECAST: 49.0 PREV: 49.2 Total Purchasing Managers' Index (1st release) FORECAST: 48.1 PREV: 48.1
• 09:15 FR: Purchasing Managers' Index/PMI manufacturing (1st release) November FORECAST: 44.0 PREVIOUS: 44.5
• 09:30 DE: Purchasing Managers' Index/PMI non-manufacturing (1st release) November PROGNOSE: 51.8 PREVIOUS: 51.6 Total Purchasing Managers' Index (1st release) PROGNOSE: 48.3 PREVIOUS: 48.6
• 09:30 DE: Purchasing Managers' Index/PMI manufacturing (1st release) November FORECAST: 43.0 PREVIOUS: 43.0
• 10:00 EU: Purchasing Managers' Index/PMI non-manufacturing Eurozone (1st release) November FORECAST: 51.5 previously: 51.6
• 10:00 EU: Purchasing Managers' Index/PMI manufacturing Eurozone (1st release) November PROGNOSE: 46.0 PREVIOUS: 46.0 Total Purchasing Managers' Index (1st release) PROGNOSE: 49.8 PREVIOUS: 50.0
• 10:30 UK: Purchasing Managers' Index/PMI non-manufacturing (1st release) November FORECAST: 52.0 PREVIOUS: 52.0
• 10:30 UK: Purchasing Managers' Index/PMI Manufacturing (1st release) November FORECAST: 50.0 PREVIOUS: 49.9
• 15:45 US: Purchasing Managers' Index/PMI Services (1st release) November FORECAST: 55.0 PREVIOUS: 55.0
• 15:45 US: Purchasing Managers' Index/PMI Manufacturing (1st release) November FORECAST: 48.8 PREVIOUS: 48.5
• 16:00 US: Consumer Sentiment Index Uni Michigan (2nd survey) November FORECAST: 73.5 1st survey: 73.0 previous: 70.5

Analyst updates, 05.11.

⬆️⬆️⬆️

- ODDO BHF raises the price target for BIONTECH from USD 110 to USD 130. Outperform. $BNTX (-0,29%)

- BARCLAYS raises the price target for AIRBUS from EUR 161 to EUR 165. Overweight. $AIR (-0,42%)

- CITIGROUP raises the price target for SCOUT24 from EUR 91 to EUR 94.50. Buy. $G24 (+0,65%)

- WARBURG RESEARCH raises the price target for REDCARE PHARMACY from EUR 174 to EUR 176. Buy. $RDC (+1,99%)

- DEUTSCHE BANK RESEARCH raises the price target for RYANAIR from EUR 17 to EUR 17.50. Hold. $RYA (-0,15%)

- BERNSTEIN rates EBAY from Market-Perform to Outperform. Target price USD 70. $EBAY (+0,81%)

- ODDO BHF raises the price target for SALZGITTER from EUR 14 to EUR 15.50. Underperform. $SZG (-0,81%)

- BARCLAYS raises the target price for COMMERZBANK from EUR 16 to EUR 17. Equal-Weight. $CBK (-0,43%)

- BARCLAYS raises the target price for MTU from EUR 295 to EUR 340. Equal-Weight. $MTX (+0,54%)

- MORGAN STANLEY rates LUFTHANSA to Equal-Weight. Target price EUR 7. $LHA (-0,34%)

- BERENBERG raises the price target for DEUTSCHE KONSUM REIT from EUR 3.50 to EUR 5. Hold.

⬇️⬇️⬇️

- GOLDMAN lowers the price target for MERCEDES-BENZ from EUR 65 to EUR 63. Buy. $MBG (+0,45%)

- UBS lowers target price for 1&1 from EUR 21.60 to EUR 21. Buy.

- WARBURG RESEARCH lowers the price target for GFT TECHNOLOGIES from EUR 40 to EUR 37.50. Buy. $GFT (+0,34%)

- HAUCK AUFHÄUSER IB lowers the price target for ECKERT & ZIEGLER from EUR 63.50 to EUR 55. Buy. $EUZ (+1,39%)

- BARCLAYS lowers the price target for BNP PARIBAS from EUR 90 to EUR 85. Overweight. $BNP (-1,38%)

- BERENBERG downgrades SCHNEIDER ELECTRIC from Buy to Hold and lowers price target from EUR 261 to EUR 255. $SU (+0,43%)

- BERENBERG lowers the price target for BEFESA from EUR 41 to EUR 31. Buy. $BFSA (+0,56%)

Share analysis/share presentation ⬇️

Today we are talking about the company Befesa: $BFSA (+0,56%)

What is Befesa and what does it do?

Befesa is a company that specializes in the recycling of industrial waste. They collect and process metal slag, salt slag and other residues from various branches of industry. Their aim is to recycle this waste and recover valuable raw materials. The company thus contributes to the sustainable use of resources.

Market capitalization:

Befesa currently has a market capitalization of around EUR 1.2 billion.

Strengths of the share:

Some of Befesa's strengths:

- Experience: Befesa has many years of experience in the recycling industry and has been operating successfully for many years.

- Specialization: The company specializes in the recycling of industrial waste and understands the specific requirements and processes of this industry.

- Technological innovation: Befesa continuously invests in innovative technologies and processes to offer more efficient and sustainable recycling solutions.

- Environmental friendliness: By recycling waste, Befesa contributes to reducing environmental impact and supports the sustainable use of resources.

- International presence: Befesa operates in various countries worldwide and has a strong presence in Europe and North America.

- Customer focus: The company attaches great importance to the needs of its customers and works closely with them to offer customized solutions.

- Financial stability: Befesa is financially sound and has a strong balance sheet, which creates confidence and stability for customers and investors.

Share weaknesses:

Here are some of Befesa's weaknesses:

- Dependence on commodity prices: As Befesa operates in the recycling industry, the company may be affected by fluctuations in commodity prices, which may impact profitability.

- Regulatory risks: As Befesa works with industrial waste, the company is subject to various environmental and waste disposal regulations, which may change. Changes in regulations could result in additional costs and compliance challenges.

- Competitive pressure: The recycling industry is highly competitive and Befesa competes with other companies in this sector. Competition may have an impact on prices and market share.

- Dependence on certain industries: Befesa relies on cooperation with certain industries to collect and process waste. Weakness in any of these industries could have a negative impact on Befesa's business.

- Potential environmental impact: Although Befesa focuses on recycling waste, there may still be potential environmental impacts that may arise from the handling of certain types of waste. The company must ensure that all regulations and best practices are followed to minimize environmental impacts.

A little more about the business model:

Befesa is a company that specializes in the recycling and reuse of industrial waste. Its business model is based on three main activities: steel dust recycling, aluminum salt slag recycling and industrial water recycling.

In steel dust recycling, Befesa collects the dust generated during steel production and processes it to recover valuable raw materials. This dust contains iron, zinc and other metals that can be reused. Befesa cleans the dust, separates the different metals and then sells them to customers who use them in their production processes.

In aluminum salt slag recycling, Befesa takes the slag that results from aluminum production and recycles it. The slag contains aluminum, which is extracted using special processes. The recycled aluminum can then be reused in various industries, such as the automotive industry.

Industrial water recycling is another important activity of Befesa. They offer solutions for the treatment and reuse of industrial water. This contributes to the sustainable use of water resources and helps companies to reduce their environmental impact.

Befesa has also specialized in the field of circular economy. This means that they not only recycle waste, but also develop solutions to minimize waste. They work closely with customers to optimize their production processes and reduce waste volumes.

Overall, Befesa's business model aims to transform industrial waste into valuable resources while minimizing the environmental impact.

A little more about the industry:

The industry in which Befesa operates is the recycling and reuse of industrial waste. Befesa is part of the environmental technology sector and is a pioneer in sustainable waste management. They offer innovative solutions for recovering valuable raw materials from waste streams. Through their business model, they contribute to the reduction of landfill and help companies reduce their environmental impact. Befesa is part of a growing industry focused on conserving natural resources and promoting a sustainable economy.

Befesa's goal:

Befesa aims to promote sustainable waste management and recover valuable resources from industrial waste. Its focus is on helping companies to reduce their environmental impact and achieve their sustainability goals. Befesa offers innovative solutions to recycle waste streams and recover valuable raw materials. Through their business model, they contribute to the reduction of landfill and help to conserve natural resources. Befesa works closely with customers to develop customized solutions that meet their individual needs. Their goal is to make a positive contribution to the environment and promote a sustainable economy.

Your opinion:

Now I would like to hear your opinion on this share in the comments.

What do you think of Befesa and were you already familiar with this company?

Do you perhaps already have the share in your portfolio?

Please let me know in the comments.

Of course, this is not investment advice but just my own opinion that I would like to share with you.

How your oven can help solve the world's waste problem.

Waste-to-Energy - Get rid of the garbage!

Hello dear community,

Have you never wondered if waste can be made usable? The topic "Waste-to-Energy" is less common within Germany and yet hard discussed, but worldwide of overwhelming importance. But why? In Germany, we have a largely solid and progressive circular economy, which will and must experience a rapid upswing in the future, also within the EU and the USA. Nevertheless, the total amount of waste worldwide will continue to increase.

And what role might your oven play in this?

I'm trying to bring it closer technologically.

If you have a modern oven, you usually don't have to clean it manually. It has a special program, the pyrolysis function. Roughly speaking, your oven is heated to such a high temperature (~500 degrees Celsius) that food residues and grease splashes are "burned" to ash. Chemically speaking, the organic compounds (your scraps), in the absence of oxygen, decompose uncontrollably. Your ash is a mixture of organic residual products.

If this technical process is now applied to biomass, for example, it is possible to produce fuels and chemicals from waste.

Exactly this procedure one tries to make world-wide in modified driving usable. The plan is to produce diesel and naphtha (raw gasoline), and also kerosene, without producing toxic emissions.

In the last contribution over the petroleum industry I explained you the intended purposes, partly.

But all this is not to be confused with the emerging and existing bio-refineries, for example by UPM $UPM (+0,39%) , Verbio $VBK (+0,14%) or Lenzing $LNZ (-0,17%) are operated. Here, wood and various types of grain are used almost exclusively as biomass.

What can be used for this purpose?

Of course, biowaste is ideally suited for this purpose, as this material consists mainly of organic materials such as hydrocarbons and their derivatives.

But "plastic" is also a very suitable material for this process. Logically, because it also consists of organic materials. Accordingly, one could roughly say that all products consisting of the original type of crude oil and natural gas could also be reconverted.

Well ..,

Many everyday items are compounds that are organic, but often have fluorine, chlorine or sulfur compounds "mixed in". As is well known, not the healthiest representatives of everyday use.

But there are technical solutions for this as well:

As I described it roughly in pyrolysis above, you have gasification of the materials. This leads to the fact that in most cases the chemical bonds can be broken and thus the substances are decomposed.

Fluorine, chlorine and sulfur, for example, can simply be chemically "rebonded" so that no new emission comes from them.

Is the implementation complicated and who would benefit?

There are essential work steps in the procedure that are already in the 1st league in terms of procedure technology. In most cases, the individual steps are not combined in the company, but are, as always, typically specialized.

1. waste separation:

Here, as is already common in Germany, the usable waste is returned to the circular economy. Residual waste and organic waste, on the other hand, are very suitable for this process.

In this case, the waste disposal companies known to us benefit in particular. This can be your municipal waste authority, but also corporations in the global trend, such as Waste Management $WM (+0,07%) , Republic Services $RSG (+0,1%) or Alba $ABA (+0,32%) .

2. separation

Here, mechanical separation processes, such as classifying or sorting, are used to separate the material once again in the process. The winners here are the specialists for separation equipment, such as Tomra $TOM , Veolia $VIE (-0,23%) or Derichebourg $DBG (-0,32%) .

3. incineration

This is then the process of pyrolysis mentioned, similar to the oven. Here the materials are burned. The resulting gases are relevant to the process.

The ash, on the other hand, is enriched with metals and can thus be returned to the circular economy. One possible beneficiary of this is Befesa $BFSA (+0,56%) .

Non-usable ash, on the other hand, can be stored in stockpiles almost without any problems. In Germany, it is already quite common to fill ash into layers of earth, for example to backfill salt mining sites.

(In this combustion process not only pyrolysis plays a role. It is more correct to mention also the process of "gasification" and "combustion". The resulting "surplus" heat can then be used, for example, to run a generator and produce electricity.

This has the advantage that on the one hand energy is generated and on the other hand the gases are cooled).

4. conversion - the interesting part

By passing the gases through various catalyst layers in a multi-stage process, the desired chemicals can now be produced.

Namely, a "pyrolysis oil", which has rudimentary similar properties and can be fed to a conventional refinery.

This works particularly well for diesel and kerosene. In this case, regenerative fuels can even be produced today, which comply with the respective DIN.

But how could I participate in this "trend"?

In fact, many energy suppliers have taken on this problem. The major pioneer here is actually Eni $ENI (+0,81%) in Europe. Waste Management $WM (+0,07%) from the USA has been making landfill gases usable for years. However, primarily for local heat generation. This is set to change in the future, with waste-to-energy processing also taking off. The oil giants BP $BP. (+0,44%) and Shell $SHEL (+0,68%) are also investing in this technology.

Advantages:

- The spatial waste problem can be limited.

- Emissions from the stockpiles can be greatly reduced through reuse.

- Alternative supply options are created in terms of fuel, chemicals, and heat supply.

- It can be considered "net zero" since the emissions in the feedstock have already been generated.

- The necessary technologies are already sufficiently mature and proven.

- A rapid solution option for decarbonizing the transport sector.

Disadvantages:

- Fossil alternatives are much cheaper.

- Plant capacities are totally inadequate for mass scale.

- High expenditure compared to low yield.

- Efficiency due to very high energy input.

- Huge logistics required to get waste to process.

- Permanent supply of waste must exist to maintain value chain.

- Public interest is very low.

- Your home oven is unsuitable for fuel production. - No serving suggestion.

Which topics of alternative energy possibilities are you interested in?

Ongoing is the plan:

- "Green Ammonia" - Why the odds are better than hydrogen.

- Lithium - Why the market caps are completely misweighted.

Do you have any requests, suggestions, criticism?