Investing.com -- A price drop that makes shareholders sit up and take notice - shares of battery company Varta (ETR:VAR1) are experiencing a turbulent day at the Frankfurt Stock Exchange. A skeptical comment on the achievability of the annual targets has unsettled investors and further strengthened the already dynamic downward trend. The result: a new low. With a loss of over 9%, the shares last traded at €17.07.
In a recent study, analyst Philipp König of Goldman Sachs recommended selling Varta shares and lowered the price target to €15, which corresponds to a halving, as reported by dpa-AFX. König sees risks to the company's revenue and earnings targets, as these assume a significant recovery in CoinPower's sales volumes. However, these are dependent on customer decisions that are still unclear, he stressed. In the profitable lithium-ion button cell business, Varta lost market shares last year. The expert also sees hardly any positive developments in other business areas.
Varta shares have already lost almost 25% of their value in 2023. But it looks even worse looking back at the peak in early 2021: with a loss in value of a considerable 90%, shares are now in a veritable nosedive.
Investors and shareholders of Varta certainly hoped for more than experiencing such a drastic downward movement. The loss of value in 2023 is a further signal of the ongoing challenges facing the German battery company.
The former high of over €181 is now just a distant memory. The decline in Varta shares has hit many investors hard.
The average price target of 7 analysts covered by InvestingPro is currently €23.93. The fair value determined by InvestingPro (€20.72), which is made up of 15 financial models, currently results in an earnings potential of 21.5%.