Bombshell, Buy Recommendation, and Upside Potential: RENK, Bayer, and Antimony Resources

Antimony Resources: Critical Metal and Gold

A major development at Antimony Resources. Until now, the investment case has been based on the company's opportunity to develop a world-class antimony project in Canada. And now gold is also in the picture. This means that Antimony Resources could benefit in the future not only from antimony's strategic importance for defence, electronics, and flame retardants, but also from a potential contribution from precious metals. And it should be irrelevant whether the gold price stands at USD 3,000, USD 4,000, or USD 5,000 per ounce. At these prices, gold production is likely to be profitable and provide additional revenue for the company.

In addition to the previously known high-grade antimony mineralization, the company has now identified significant gold grades in more than 45 drill holes in the Main Zone. Analysis of approximately 190 sample intervals yielded an average of 1.14 g/t gold over 2.56 m. The best reported interval contained 1.88 g/t gold over 4.85 m. It is interesting to note that the gold mineralization does not overlap exclusively with the high-grade antimony zones. In some cases, gold was also detected in adjacent areas. This points to a broader mineralized system and increases the exploration potential of the Main Zone. This zone remains open to the north and south. Furthermore, gold evidence to date extends over more than 600 m of drill length. In the neighbouring Central Zone, surface stibnite and gold mineralization have already been observed. Initial drill cores there show antimony-bearing breccias over thicknesses of up to 37 m. Analysis results from this area are expected in the coming weeks.

The focus remains clearly on antimony. According to the company, Bald Hill is considered one of the highest-grade antimony deposits in North America. In the Main Zone, mineralization has so far been traced over a length of more than 600 m and to a depth of at least 350 m. The average thickness is approximately 4 to 5 m, with antimony grades of 3% to 4%. The project now covers more than 3,700 hectares, offering significant potential for expansion. New ground anomalies south of the Main Zone, along with planned geophysical surveys, mapping, and further drilling, could provide additional catalysts for the share price in the coming months. With the additional gold discoveries, the Bald Hill project could become even more economically attractive.

Antimony shares have undergone a painful correction since early April. The stock price has fallen by more than 50% since then. Drilling results remain positive; antimony is a critical metal, and now there is also gold potential to boot. Therefore, the stock appears attractive at around EUR 0.35. Analysts at GBC Research estimate the fair value at EUR 1.90. And that is even before factoring in the gold potential.

RENK: Opportunity Arising from the Rheinmetall Fiasco?

Last week, the German government caused a major stir in the defence industry. The likely cancellation of the multi-billion-euro F126 frigate program demonstrates once again how dependent the industry is on large-scale government contracts. While TKMS saw its share price rise sharply as a potential beneficiary of a switch to the MEKO A200 class, Rheinmetall was severely punished by the market due to its previous role in the F126 program. RENK's stock also came under pressure, losing nearly 20% at one point, even though the project's direct financial impact is likely to be relatively limited.

mwb research sees RENK's recent share price weakness as a buying opportunity. Although RENK is fundamentally involved in the project through the supply of gearboxes, the direct risk is limited. Analysts estimate a potential write-down risk of around EUR 20 million on components that have already been partially delivered. This could be at least partially offset by potential compensation claims.

From mwb's perspective, a switch from the F126 to the MEKO A200 class could even be structurally advantageous for RENK. The new frigate class is likely to entail shorter delivery cycles, potentially higher unit volumes, and a higher proportion of gearboxes per ship. This could result in additional revenue potential of approximately EUR 30 million to EUR 40 million.

Overall, analysts believe RENK remains on track. In the second quarter of 2026, order intake could exceed the EUR 500 million mark, making it one of the strongest quarters in the company's history. However, individual orders could be pushed back into the third quarter. While margins in the Vehicle Mobility Solutions division are expected to remain stable, mwb anticipates a gradual recovery in the Marine & Industry segment. The structural drivers stemming from the rearmament of NATO countries and RENK's strong position in land systems remain intact. Accordingly, the stock has been upgraded from "Hold" to "Buy," even though the price target has been lowered from EUR 53 to EUR 50 due to more cautious assumptions regarding Boxer and Leopard volumes. RENK shares are currently trading at around EUR 42.

mwb expects RENK to experience dynamic growth in the coming years. Revenue is projected to rise from EUR 1.54 billion in 2026 to EUR 1.82 billion in 2027 and then to EUR 2.13 billion in 2028. At the same time, EBITDA is expected to rise from EUR 350 million to EUR 406 million and then to EUR 479 million. Analysts anticipate earnings per share will increase from EUR 1.85 in 2026 to EUR 2.62 in 2028.

Bayer: What Analysts Are Saying About the Breakthrough

Describing last week's announcement as a "sensational breakthrough" is likely an understatement for Bayer. The US Supreme Court's ruling represents a breakthrough for Bayer in the never-ending glyphosate saga. According to the Leverkusen-based company, numerous existing and future Roundup lawsuits, based on allegedly insufficient warning labels under state law, are now off the table. This is contingent on the EPA confirming the product's safety and labeling. This would significantly narrow the legal patchwork in the US and reduce the financial burden caused by the lawsuits that have been ongoing for years. Together with the class-action settlement from February 2026, which has already been provisionally approved, the ruling could help limit the long-term legal risks associated with glyphosate.

And how did analysts react? Overall, positively. At DZ Bank, the price target for Bayer shares has risen from EUR 51 to EUR 54. Analysts say the ruling is a "fundamental breakthrough" for the Leverkusen-based company. UBS puts the fair value at EUR 52, and Goldman Sachs even at EUR 55. This decision could bring a decade of legal risks to a close. All of these research firms recommend Bayer shares as a "Buy".

Only Jefferies is somewhat more cautious. While the analysts raised the price target from EUR 40 to EUR 46, they maintained a "Hold" recommendation. They noted that the Supreme Court's decision was clear and reduced the legal risks related to missing warning labels. However, there are other lawsuits that are not affected by the decision.

Bayer shares are currently trading at around EUR 47.

With its latest drilling results, Antimony Resources is expanding its investment case to include gold. Analysts had already seen potential for the stock to multiply in value based on the antimony story. Now precious metals are being added to the mix. RENK is likely not overpriced, but momentum has clearly faded in the defence sector at the moment. For Bayer, the US Supreme Court's ruling is a major relief.