The Uniper share falls into the abyss. Since the beginning of the year, the share has lost 82 percent of its value. In the last five trading days alone, it was again a minus of 48 percent. Today it is again a juicy daily loss of 9.2 percent to 5.93 euros. Last Friday, Uniper announced that the German state would take a 30 percent stake in the company, and on top of that would give an additional 7 billion euros in credit after the 2 billion euros that had already been granted. It’s a double-edged sword. On the one hand, Uniper would soon have been bankrupt without the state aid – on the other hand, this state rescue is a burden on the company. Because the capital increase will dilute the shares of the existing shareholders. And the new loans increase the company’s debt.
The sharp fall in the Uniper share price has resulted in the company currently only having one market capitalization (stock market value) of 2.2 billion euros. Consider: The German state is acquiring Uniper shares via the capital increase at a price per share of just EUR 1.70 – and the stock market price is currently listed at EUR 5.93.
According to yesterday To report JP Morgan lowered its target price for Uniper shares from EUR 32 to just EUR 5.50. The classification was lowered by two levels in one fell swoop, from overweight to underweight. Taking into account the capital increase at the issue price of EUR 1.70 per share, excluding shareholders’ subscription rights and the multi-billion dollar mandatory convertible bond, JPM sees the fair share price at EUR 5.30. Goldman Sachs is currently lowering its target price from EUR 10 to EUR 4.50.
At the moment, it doesn’t seem as if there’s any sunshine to be found for the Uniper share. Even if the company can pass on the higher purchase prices for gas to its customers from October. The burdens remain high, and the billions in loans weigh on the company. In the short term, could there be a small turnaround in the stock as it is oversold after losing so heavily in recent weeks?
TradingView Chart shows the percentage development of the Uniper share since the beginning of the year.
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