March 14th, 2024 | 06:30 CET
Aixtron, Standard Lithium, Edison Lithium: Up to 200% upside potential!
The Aixtron share is working on a comeback. The last few trading days have been positive, and an analyst commentary also gives hope that the crash is over. After all, the medium-term prospects of the plant engineering company are considered promising. Lithium also appears to be recovering. The long-term prospects for the sector are promising. In the case of Standard Lithium, support at USD 1 has held, and analysts see a price potential of more than 200%. At Edison Lithium, a spin-off is creating price fantasy. Will the IPO of the cobalt business bring about a turnaround? In its core business, the Company is focusing on the raw material for the next generation of batteries.
time to read: 3 minutes | Author: Fabian Lorenz
ISIN: AIXTRON SE NA O.N. | DE000A0WMPJ6 , STANDARD LITHIUM LTD | CA8536061010 , Edison Lithium Corp | CA28103Q2080
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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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Edison Lithium about to jump in price? Cobalt subsidiary about to go public
Edison Lithium brings a breath of fresh air to the battery metals sector, is an exciting alternative to the well-known lithium explorers, and is emerging as a real hot stock. Why? The Company is valued at significantly less than CAD 5 million, and there are two compelling reasons for potential share price increases. **In its core business, the Canadians are focusing on the raw material for sodium-ion batteries. These batteries represent the next generation of battery technology and an alternative to lithium-ion batteries. The first vehicle manufacturers are already incorporating these lighter and cheaper batteries. Edison is currently realigning itself to benefit from the increasing demand. The Company is largely divesting itself of the lithium assets in Argentina and has instead secured access to sodium brine concessions in the Canadian province of Saskatchewan.
The spin-off of the cobalt division could be a short-term price trigger. The previously wholly owned subsidiary Edison Cobalt Corp. is to be floated on the stock exchange. The Company holds the Kittson Cobalt concession area in the Canadian province of Ontario. The stock market listing will allow investors to invest specifically in cobalt. The parent company, Edison Lithium, should also benefit from the measure, and the share price should rise accordingly. Edison CEO Nathan Rotstein has already commented on the plans in the past: "We are always looking for ways to increase shareholder value, and the spin-off of the cobalt assets makes perfect sense in that regard. Cobalt is an important mineral that is in high demand for rechargeable batteries for electric vehicles, cell phones and other electronic devices. The new company represents a compelling opportunity for further investment in the highly competitive battery metals sector."
Standard Lithium: More than 200% upside potential?
Of course, the lithium sector also continues to offer opportunities, even if investors have not been enthusiastic about the sector in recent months. This is probably due to the price war between e-car manufacturers such as BYD and Tesla. It should be relatively unimportant for lithium producers who wins the race among car manufacturers. An anti-cyclical entry can, therefore, be worthwhile. Standard Lithium is one of the most exciting explorers. The Company, with high-grade lithium deposits in the US, is on the verge of production. The share has lost almost two-thirds of its value in the past six months alone and is now trading at just USD 1.2.
**The analysts at BMO Capital see significant upside potential and have added Standard Lithium to their coverage with an "Outperform" rating. The target price is CAD 3.75. The analysts consider the direct lithium extraction (DLE) technology used by Standard Lithium to be clever. With DLE, lithium is to be processed directly into battery quality. The process has been extensively tested in recent years, and strategic partners - including Koch Industries and the German company Lanxess - would ensure confidence.
Aixtron share soon back at EUR 50?
With a performance of -28%, Aixtron is one of the disappointments of the current year on the German stock market. Most recently, the surprisingly weak forecast for the current year pushed the share price down to almost EUR 25. This level seems to be holding and the share price is approaching EUR 27 again. Support comes from Jefferies. The analysts continue to recommend the Aixtron share as a "Buy". The target price of EUR 50 is significantly higher than the current level. Equipment manufacturers should benefit from the accelerating industry cycle in the semiconductor sector. Demand from China should also pick up again. Jefferies, therefore, sees this as an exciting entry opportunity.
Investments in lithium are currently of interest to anti-cyclical investors. The fact that the long-term prospects are excellent has not changed, even if shares in the sector are not currently in focus. This situation can change again quickly. Edison Lithium is not only extremely inexpensive, but is also attracting investors with the cobalt IPO as a price trigger. Standard Lithium is among the explorers with advanced projects and strong partners. The Aixtron share has likely found its bottom. The outlook for the sector remains positive.
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