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On Monday, the battery manufacturer’s papers fell by 8.68 percent to 119.90 euros and are thus at the bottom of the MDAX. Since their record high at the end of January at 181.30 euros, Varta shares have already lost around a third, although the downward trend was particularly strong after Varta issued a cautious business outlook last week.
This outlook made it all the more clear that the high on January 30 was probably not due to the fundamentals, i.e. the company’s performance. Rather, investors, heated by the previous price explosion of the Gamestop share (GameStop), took advantage of the predicament of short sellers and triggered violent price reactions.
It was accessed a month ago – “on the hunt for the next game stop”, as a trader said at the time – for stocks in which speculators had been betting heavily on further falling prices. Varta was one of them. Short sellers who had sold such stocks at a predetermined price without owning them had now been forced to quickly stock up on the stocks to minimize losses. That had pushed the course higher and higher.
In the past week it became clear that a certain caution at Varta was by no means out of place. Although the company reported strong growth in the Corona year 2020 and wants to pay a dividend for the first time, the growth outlook for 2021 was clearly disappointing. Accordingly, the share has since been sent downhill. Analyst Christian Sandherr from Hauck & Aufhuser also named the company’s goals as a reason to downgrade the share from “Hold” to “Sell”.
Berenberg analyst Charlotte Friedrichs justified her new investment vote with the roller coaster ride of the share price in the past year and now sees only limited upside potential. At the same time, however, she considers Varta’s forecasts for sales growth and adjusted operating profitability to be conservative and praised the battery manufacturer for its “unique market position and great growth potential in the wireless headphones segment”.
However, now that she too has given up her “Buy” vote, there is no longer any expert on “Buying” the Varta papers. In the meantime, the majority are advised to sell.
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Negative studies Varta shares continue downward slide analysts recommend buying message