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BERLIN (dpa-AFX) – After the online furniture retailer broke out in the summer a good two years ago, Home24 went up slightly – but after a month it was over, the price slipped. Currently, however, the situation has relaxed, because Berliners are clearly benefiting from the Corona crisis. The good starting position could also open the doors to the SDAX for the company. What’s going on at Home24, what analysts say and what the share is doing.
LOCATION AT HOME24:
Restrictions on going out, the fear of being infected with the coronavirus and the resulting, growing desire to shop online ensured good news at Home24. The online furniture retailer felt a decline in demand immediately after the start of the Corona crisis. In the past quarters, on the other hand, it was able to grow significantly: noticeably more orders from Europe and Latin America motivated the management board to raise the forecast again.
The Berliners were able to announce positive news at the beginning of the year: The final quarter of 2019 was the first profitable one, it was said in February. Previously, high investments in new warehouse locations, software and increased marketing expenses had put pressure on the result. The advertising had brought Home24 down significantly in the corona pandemic.
The now good earnings situation plays into the hands of Home24: The Berliners are traded as a hot SDax candidate. But Home24 is not the only online furniture retailer that has been shortlisted: He is getting competition from Westwing (Westwing Group) from Munich. There are also a number of other potential candidates, such as the online broker Flatex (flatexDEGIRO) or the armament electronics manufacturer HENSOLDT.
On the evening of December 3rd, it will be clear whether one of the two furniture suppliers will really make it into the second-tier index. The German stock exchange plans to announce the result of its index review this Thursday. Any changes should then follow two and a half weeks later on December 21.
Home24 itself wants to grow and still sees room for improvement. “The market is huge, but there is still no clear winner like Amazon or Zalando in other online industries,” said boss Marc Appelhoff in February of the German press agency.
WHAT DOES THE SHARE DO:
At 20.47 euros, a Home24 share is currently worth as much as it was last in October 2018. Since then, the price has continued to fall for almost ten months. It was not until September 2019 that the papers rang out again for a short time before the course gave way again. Since the low in the spring of this year at 2.55 euros during the Corona crash, the share has gained in strength again. The price rose constantly due to the online buying mood during the pandemic.
Long-term investors may not have liked the trend so far: Because the price is currently around a third below its record high of EUR 31.80, around a month after the move in mid-June 2018. The company currently has a market capitalization of around EUR 540 million. In the case of the competitor for the move into the SDax Westwing (Westwing Group), it looks better in comparison: The Munich residents come to a good 650 million.
WHAT THE ANALYSTS SAY:
Bloomberg has recorded two houses that deal with the Home24 share. Bankhaus Lampe and Berenberg advise investors to buy. The current rate is not far from the experts’ price targets of 23 and 21 euros (Berenberg).
Berenberg analyst Graham Renwick emphasized in a study that Home24 had been profitable for the past twelve months and had a positive cash inflow. This has rebuilt the credibility that the company can also grow sustainably and profitably. The current value of Home24 is still favorable. The share offers “significant upside potential”.
Bankhaus Lampe even called Home24 a “Top Pick” because of its growing profitability. Analyst Christoph Bast also hoped for further positive effects from the renewed Corona restrictions and the recommendations to stay at home. Both factors could have a positive impact on the fourth quarter./ngu/men/jha/