February 5th, 2025 | 06:55 CET
+300% Price Target, Major Order, and Bill Gates: RHEINMETALL, D-WAVE, ALMONTY INDUSTRIES
These stocks are successfully resisting the crash in tariffs and should continue to march even if the situation escalates: analysts see a revaluation and over 300% upside potential for Almonty Industries. The Company, with a 2026 P/E ratio of 6.3, is well on its way to becoming a major global commodity player. The massive tungsten mine in South Korea is set to open this year. The latest sensation is the sale of decades' worth of molybdenum production to a SpaceX supplier. Analysts are also still enthusiastic about Rheinmetall. The share price is rising almost even faster than the price targets, and the latest major order shows that it can continue. And how is high-flyer D-Wave doing? The specialist in quantum computing is also unlikely to be affected by tariff struggles and is getting a tailwind from Microsoft founder Bill Gates.
time to read: 5 minutes
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Author:
Fabian Lorenz
ISIN:
RHEINMETALL AG | DE0007030009 , D-WAVE QUANTUM INC | US26740W1099 , ALMONTY INDUSTRIES INC. | CA0203981034
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Almonty Industries: Over 300% upside potential after revaluation
After a bang last week, analysts at Sphene Capital raised their price target for Almonty Industries from CAD 3.21 to CAD 5.20. The stock, which is also actively traded on German exchanges, is currently trading at CAD 1.20. The analysts thus see a price opportunity of more than 300%. At the current price level and the analysts' earnings estimate of CAD 0.19 per share for 2026, the 2026 P/E ratio is 6.3. Too cheap!
In the new study, the analysts have considered the value of Almonty's molybdenum deposit for the first time. This is because the tungsten producer caused a stir last week when it announced that it had signed an exclusive offtake agreement for the entire molybdenum production of Almonty's Sangdong molybdenum project with the SeAH Group, a steel producer that supplies the SpaceX aerospace group, among others. The deal can be described as spectacular because the mine is scheduled to go into production in 2026 and is designed to operate for up to 60 years. In full production, 5,600 tons of molybdenum are to be mined annually. The contract shows how critical molybdenum is for industry.
From the analysts' point of view, Almonty is thus becoming one of the leading suppliers of two valuable minerals - tungsten and molybdenum - which justifies the revaluation of the share. The current Sphene Capital study takes into account both the current and future producing assets - Sangdong (tungsten and molybdenum), Panasqueira, and Los Santos (both tungsten) - as well as the discounted value of Valtreixal in Spain.
The Almonty stock was already in the process of being revalued before the molybdenum announcement. This year, tungsten production is scheduled to begin at the Sangdong mine - the largest tungsten mine outside of China. Tungsten is a critical raw material and indispensable in many key industries – from aerospace, defense, and electronics to renewable energies. As a result, companies and governments are lining up to get a piece of the tungsten pie. The announced relocation of the Company's headquarters to the US gives an indication of how strategically important Almonty will be with Sangdong. This is likely to increase interest from US investors and help the stock to march towards the Sphene price target (http://www.more-ir.de/d/31707.pdf).
Rheinmetall: New billions from the Bundeswehr
Like Almonty, Rheinmetall is also of critical importance to companies, governments, and countries. While the commodity company is still at the beginning of its revaluation, this process has already been completed for the largest German defense contractor over the past three years. However, Rheinmetall's stock is an impressive example of how rising prices do not have to end there. Driven by rising defense spending in Germany and NATO, new major orders are regularly reported and price targets raised.
Yesterday was another day like that. Rheinmetall announced that it would be responsible for setting up an integrated communications network within the Bundeswehr as the general contractor. The framework agreement for the installation of the so-called "Tactical Wide Area Network for Land Based Operations" (TaWAN LBO) has a volume of several billion euros and a term of ten years. Worth EUR 1.88 billion, the first concrete order for equipping a Bundeswehr division was issued together with the framework agreement.
Rheinmetall CEO Armin Papperger states: "*We are grateful for the great trust that the Bundeswehr is placing in us in connection with its ambitious efforts to digitize. The fact that the Bundeswehr is now getting TaWAN LBO and D-LBO from a single source means that the conditions are in place for a coordinated introduction of both systems. *Our aim is to provide the Bundeswehr with a seamless and reliable communication network within the given timeframe that can be considered the flagship of digitization in Germany."** As part of TaWAN LBO, Rheinmetall MAN will also supply protected 8x8 HX trucks, which serve as carrier vehicles for the large radio relay systems and are equipped with high mobile extendable antenna masts.
Last week, Hauck Aufhäuser raised its target price for Rheinmetall shares from EUR 750 to EUR 920. If the flood of orders continues at this rate, further analysts are likely to follow suit shortly. The defense company's shares are currently trading at EUR 755.
D-Wave: Tailwind from Microstoft founder Bill Gates
Almonty and Rheinmetall are too important for the security of Western countries. D-Wave should also remain largely unimpressed by possible tariff disputes. This is because the quantum computing specialist is still in an early operational phase and can still grow well in its home market of the US, for example. The entire quantum industry has received a tailwind from Bill Gates. After Nvidia CEO Jensen Huang's statements a few weeks ago that it will likely take at least another 20 years before quantum computers can really be useful, the Microsoft founder sees the breakthrough in just a few years.
The billionaire said in Yahoo Finance's Opening Bid podcast that useful quantum computers will not take decades. Gates comments: *"There is a possibility that he [Nvidia founder and CEO Jensen Huang] is wrong.* In the next three to five years, one of these techniques may obtain sufficient real logical qubits to solve some challenging problems. And Microsoft is a competitor in this area." In November 2024, Microsoft announced that it is co-developing "the world's most powerful quantum computer" and that it will be presented in 2025.
In the podcast, Gates said that he was impressed by Microsoft's work in the quantum field. However, there is still a lot to be done before quantum computers can solve the problems that other computers cannot. Quantum stocks benefited from the overall positive statements yesterday. In early US trading, D-Wave's stock rose by over 6%.
Donald Trump's tariff threats will likely keep the stock market on tenterhooks for some time to come. It is, therefore, worth having shares in your portfolio that can remain largely unaffected by this. Almonty is a hot stock for 2025. One will likely be able to pick and choose customers for tungsten – the supply outside of China and Russia is too small. With molybdenum in its portfolio, a second critical raw material is now also available. Rheinmetall reports new orders from Germany and NATO every week. However, investors must also expect a strong setback after the multiplication – for example, if peace comes to Ukraine. The topic of quantum computing will continue to electrify the stock market. Whether specialists like D-Wave or tech giants like Google and Microsoft will win the race is hard to predict.
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