Welcome Snackers, today’s snack will cover the market developments of Digizuite and Boozt.
Today’s Market Movements
Denmark:
OMX:C25 (-2.50%)
Sweden:
OMX:S30 (-2.17%)
Norway:
OBX:OSL (-0.41%)
S&P 500 (-1.91%)
Nasdaq (-2.60%)
Today’s European markets fell in reaction to rising yields on 10-year treasury bonds. Since the Federal Reserve indicated a downsizing of its current stimulus programme last Wednesday, 10-year yields have risen. The outcome has been a simultaneous lifting in interest rates from 1.31% to 1.53%. Michael Friis, analyst at HC Andersen Capital, said today that increasing interest rates are particularly hard felt in Danish equity markets because they are expensive. Their high price makes them more sensitive to interest rate changes. The C25 closed the day 2.5% down.
In the US fuel was added to this fire as comments from the head of the Federal Reserve, New York, John Williams and from the head of the Federal Reserve, St. Louis, James Bullard, hinted towards downsizing of the Fed’s bond-purchasing programme soon – analysts expect downsizing to commence in November.
The US further dampened the market’s mood this afternoon as consumer confidence numbers were published. IN SEPTEMBER, the US consumer confidence index fell to 109.3 from 114.5 in August, its lowest level since February 2021 -a largely unchanged level was expected. Consumer confidence is affected by the delta variant but also by rising energy prices.
Comments from Christine Lagarde at the ECB forum were precautionary as she said: the European Central Bank, ECB, must be careful not to withdraw its stimulus too quickly in order to counter what is most likely a temporary rise in inflation. However, analysts anticipate the ECB will have fully removed its Covid-19 relief bond purchasing programme by March 2022.
Today’s snacks
Digizuite today announced a new North American customer that operates 6,000 restaurants, ice cream shops and bakeries. The customer’s size will generate a significantly larger Annual Recurring Revenue (ARR) than Digizuite’s average customer portfolio. The agreement is a testament to Digizuite’s technology having a unique ability to manage brand materials in larger companies. Digizuite maintains its short-term guidance with ARR of DKK 32-35m by 2021.
Boozt experienced a fall in its share price of 8.8% at market close today. The move followed news of Handelsbanken initiating coverage on the company with a sell recommendation and a price target of SEK 140 compared to its closing price of 146.80%. The company’s remaining analyst coverage have an average buy recommendation and a price target of SEK 200, via Refinitiv.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.
Author: Philip Coombes
