100% price potential! Bayer, Steyr Motors, and gold gem Kobo Resources

Kobo Resources: Is the gold gem finally awakening?

Kobo Resources shares rose by around 20% last week. This could be the start of a sustained rally, as the price of gold is very stable and the exploration company appears to be anything but highly valued. In addition, investors speculating on a takeover could also be positioning themselves. One potential buyer is neighboring Perseus Mining. It already operates a mine just a few kilometers away and could strengthen its resources with the Kobo project while saving on investments in new infrastructure.

Atrium Research also sees upside potential for Kobo Resources' stock. Analysts believe the fair value of the Kossou and Kotobi projects is well above the current price. They have set a price target of CAD 0.60. Kobo's stock is currently trading at around CAD 0.23.

Kobo Resources and Perseus Mining are both active in Côte d'Ivoire. The West African country is one of the most stable on the continent. The government is focusing on international mining partnerships and attracting more and more gold companies. Kossou is Kobo's advanced flagship project. It is located only about 40 km from the capital, Yamoussoukro, in the Birimian Belt and in the vicinity of Perseus's already producing mine. This year has seen promising drilling with gold discoveries near surface and at depth with grades of up to 17.30 g/t Au. An initial resource estimate is expected to be published in the first quarter of 2026.

Bayer: Surprise of the year

While Kobo Resources is only at the beginning of its rally, Bayer shares have gained an impressive 72% since the start of the year. This makes the Leverkusen-based company's stock one of the positive surprises of the current year.

The latest jump in the share price occurred last week. It was announced that the US government is backing Bayer in the glyphosate lawsuits. The government's chief litigator before the Supreme Court, the highest US court, is recommending that a key Monsanto case be accepted and that Bayer be followed on key points. This could lead to an important decision in the coming year. If the Supreme Court rules in favor of Bayer, this could be considered a precedent and massively limit or completely prevent future damage claims.

In addition, there has been a surprising amount of positive news from the Company's pharmaceutical pipeline this year. Previously, it had been considered thin, and the Company was seen as too financially weak to accelerate development.

From Barclays' perspective, Bayer shares should now take a break. Analysts see the fair value at EUR 30, which is below the current level of around EUR 33. The US government's support for the Supreme Court is seen as a positive step. Analysts even see a chance that a decision could be reached by June of next year. However, the outcome is still uncertain, and the stock is fairly valued at its current level.

Steyr Motors: Analysts enthusiastic about the technology

Steyr Motors shares have also shifted into high gear in recent weeks. Since hitting a low of around EUR 28 at the end of November, the stock has climbed to around EUR 36, even though defense stocks have been weak overall.

NuWays analysts believe the manufacturer of special engines for military and civilian use could see its share price rise by almost another 50%. In its niche, Steyr's engines are said to offer unmatched power-to-weight ratio and extreme reliability. The Company's technical edge enables it to build customized engines for military vehicles, boats, and APUs that are essentially without alternative. As a result, it is supported by renowned OEMs such as Thales, KNDS, Rheinmetall, and Urovesa.

Steyr Motors already has an order backlog of around EUR 300 million. In addition, several large-scale defense programs entering the procurement phase in 2026 would offer a cumulative sales potential of well over EUR 100 million. Decades of underinvestment in Europe's land forces would lead to a sustained procurement cycle, precisely in the subsystems in which Steyr is involved. At the same time, internationalization in Asia and the US, in conjunction with the new mobile drive unit, would expand Steyr's TAM and support growth beyond the current core programs.

Analysts expect average revenue growth (CAGR) of 37% for the period 2024 to 2028. At the same time, the EBIT margin is expected to rise to 21% by 2028.

Gold, defense, and pharmaceuticals. There are winners in every sector. Kobo Resources has significant catch-up potential in the gold industry. The stock finally appears to be shifting into rally mode, and analysts see over 100% upside potential. According to Barclays, the upside potential for Bayer has been exhausted for the time being. But who would have expected a more than 70% increase in the share price for 2025? Steyr occupies an exciting niche. However, it is not only revenue that needs to be increased significantly, but also margins.