When the leading Swiss provider of structured investment products LEONTEQ presented its excellent half-year figures, the share price initially went up significantly. Today, unfortunately and wrongly, there is not much left of this euphoria! The share is under selling pressure together with the market and is again "scratching" the CHF 50 mark. The fundamental reasons are completely disregarded, which is why the share remains very attractive! LEONTEQ is doing nothing wrong and is still positive for the rest of the year. The provider of structured products expects a record high net profit and stands for diversified profit potential. Many securities houses expect a deteriorating market environment and they therefore cannot quite warm up to the LEONTEQ share. CEO Lukas Ruflin also faces economic realities and expects continued uncertainties in the markets. Nevertheless, he remains confident and is sticking to the forecast of record profits in 2022. LEONTEQ has also conducted hundreds of stress tests. If the environment in the second half of the year is similar to the first, customers are likely to remain cautious, but LEONTEQ will benefit from hedging in return, he said. LEONTEQ will continue to manage risk prudently, he said. One scenario, he said, is also that the market comes back so strongly that, in turn, investors' appetite for risk is awakened... LEONTEQ would also benefit from that. That the derivatives boutique is doing well is also revealed by its continued diversification. New business, for example, is already responsible for slightly more than half of its revenues.
The LEONTEQ share impresses with a P/E ratio 2022 of well below 10x! Especially the dividend potential is exciting! LEONTEQ intends to distribute more than 50% of the profit to the shareholders. This means a yield of over 6%! Target price: CHF 85!
