Uniper share: New opportunities after significant gains?

Last Updated: 2. Januar 2024By

Who would have thought that the stock of Uniper could recover again? At the start of the year, the stock managed to achieve a plus of about 6% until the early morning hours. That’s enormous! On the last day of the old year, the stock went up by about 11.5%. This is also an enormous achievement that has not yet been properly recognized.

Because Uniper was on the verge of collapse at the stock markets. Should you still invest? Because at first glance there is a possible undervaluation.

Capital reduction – the new valuation Through a capital reduction in December, the stock is now to be revalued. Shareholders received one new share for every 20 old shares. The old share cost about four euros. This would mathematically suggest a share price of 80 euros – however, the value is currently trading at around 60 euros even after the two strong days. This is still a sign of mistrust in the market.

The stock could be „undervalued“ – and this is even after the strong trading days. I do not agree with this view. This has economic reasons. The current estimates assume that the company could achieve a significantly lower net income in the new year, with the markets currently expecting around 1.3 billion euros.

Given the current market capitalization of around 24 billion euros, this would result in a price-earnings ratio of about 18. This is particularly ambitious compared to other energy companies. Therefore, the stock is certainly not undervalued at first glance.

However, speculation is still ongoing. There are currently no new news from the company. Observers believe that the special conditions – the low gas prices on the world market (with different gas types and markets, of course) – have positively affected the numbers in 2023.

This cannot be repeated, at least not with certainty. Therefore, the stock is currently difficult to evaluate – because if the assumptions are wrong, new opportunities will certainly open up.

On the other hand, analysts have a similar view to mine. The estimates are pessimistic. The average target price is 49.20 euros. This would be a setback of more than 12 euros, or more than -20%. Therefore, I will not be able to recommend the stock to you, even if the temptation for high price gains is great.

Uniper stock: Caution! – WKN: UNSE01 – ISIN: DE000UNSE018

Source: https://fundamental.aktienscreener.com/DE000UNSE018/05/uniper-se/data