by Sven Parplies, Euro on Sunday
The Swabian battery manufacturer Varta has long been a darling of the stock market. Between 2018 and 2021, the share price has increased tenfold at its peak. Varta produces, among other things, mini batteries that are installed in wireless earphones or hearing aids. According to reports, one of the customers is the cult group Apple, whose Airpods are very popular. The automotive industry offers great long-term potential with the growing importance of battery-powered vehicles. However, the hard facts from day-to-day business have cooled the enthusiasm of the stock market traders.
In November, the company cut its sales forecast. The management referred to delays in orders from customers who were struggling with delivery bottlenecks and production losses due to local lockdowns. The share has caught up in the meantime and is oscillating sideways along the EUR 110 mark. New impetus should come at the latest at the end of March, when Varta presents its annual report for the past year and with it an updated outlook. We continue to rate the stock as a hold position for now.
Industry: energy storage
Headquarters: Ellwangen (Baden-Wuerttemberg)
market value: €4.4 billion
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