Free Issue No. 03 of 30.01.2020
During the last few weeks, there has been little coverage of LEONTEQ, the leading provider of structured investment products, although the excellent stock market environment would have been ideal for good news. The stock was trapped in a sideways movement until the end of December 2019, forming a strong price floor. January, however, helped LEONTEQ gain new momentum and markedly improved the upside potential . Great importance is now attached to the 2019 annual report, which will be published in mid-February.We are particularly interested in how LEONTEQ's digital marketplace is progressing. The new offering developed last year called LynQs allows clients and third parties to issue structured products, and the platform is designed to offer a completely new investment experience. One's entire portfolio of structured products (including third-party products) can be fed into the platform, analyzed, and manage it throughout its lifecycle in real time via the web and, in the future, via a mobile application.LynQs offers suggestions for new investment opportunities using features supported by artificial intelligence.
For fiscal 2019, we expect earnings of CHF 3.60 per share and for 2020, earnings of CHF 4.40 per share. The strong earnings growth of over +20% and the low 2020 price/earnings ratio of around 7.9x could easily prompt a revaluation in this environment! The fact that the stock hasn't really taken off yet is largely due to investor distrust of the scalability of the strategy, but we believe the platform will unleash tremendous earnings power. The fact that the LEONTEQ share could also become capable of paying dividends again as early as this spring is a further buy argument.
Our price target remains CHF 75!
