Alibaba, Power Metallic Mines, Bayer – Spectacular twists

Bayer – Brightening chart picture

The crisis-ridden agricultural and pharmaceutical company continues to bottom out. After a consolidation phase lasting more than 10 years and a loss of over 87% to EUR 18.41, Bayer shares have risen significantly since November last year. They are now trading at EUR 30.60, just shy of breaking through the significant resistance level at EUR 31. A sustained break above this level would offer the share short-term upside potential to around EUR 41.

The Leverkusen-based company received fundamental tailwind from positive Phase 3 results for the anticoagulant Asundexian, which was able to significantly reduce the risk of stroke in patients after a non-cardioembolic ischemic stroke. The once-daily drug Asundexian, in combination with antiplatelet therapy, achieved both primary efficacy and safety endpoints. The US Food and Drug Administration (FDA) has already granted the drug fast-track status.

Bayer's head of research, Christian Rommel, spoke of an "important milestone" in the Company's commitment to innovative thrombosis prevention. Bayer now plans to hold talks with global authorities and intends to present detailed study data at a scientific congress.

Analysts view Bayer's development positively. Goldman Sachs is maintaining its "Buy" rating and sets the target price at EUR 34.50. Analyst James Quigley calls the new data "groundbreaking" and estimates the market potential of Asundexian at around EUR 3 billion. JPMorgan, on the other hand, remains more cautious and continues to rate Bayer as "Neutral" with a price target of EUR 25. Although it sees blockbuster potential, comparative data on the competing drug Milvexian is needed to assess the market opportunities accurately.

Power Metallic Mines – Polymetallic powerhouse with XXL potential

The global race for strategic metals is picking up speed, and Power Metallic Mines, a Canadian exploration stock, is coming into focus as a future heavyweight in the commodities sector. The combination of high-grade discoveries, an enormous land position, and geopolitical relevance could make the Company one of the most exciting stocks in the North American commodities sector.

Quebec is one of the world's best jurisdictions for sustainable mining. There, Power Metallic is securing a project portfolio that is rare in the junior sector in terms of size and quality. The NISK project is delivering drill results that are already reminiscent of some of the largest polymetallic discoveries of the past decades. Copper equivalent grades of up to 16% over several meters demonstrate the potential that lies in the ground here. And the 100,000-meter drill program ensures a steady flow of news.

Meanwhile, the project area is expanding rapidly. Through acquisitions, the property has been increased by over 600% to 313 sq km. Notably, sellers such as Li-FT Power accepted payment in shares, which demonstrates confidence in the management and the quality of the project. At the same time, metallurgical tests are underway at SGS Canada, which have so far confirmed robust sulfide mineralization and, therefore, good conditions for conventional processing methods.

The geopolitical situation further increases the project's attractiveness. Western industries are looking for independent sources of metal, while China is tightening its export policy. A diversified copper-nickel-PGE project in a secure constitutional state such as Canada is therefore of considerable strategic importance.

Analysts see enormous catch-up potential. At a current price of CAD 0.92, multiplication potential is forecast. Roth Capital Partners recommends the stock as a "Buy" and sees a 12-month price target of CAD 3.00, while Red Cloud assigns a price target of CAD 2.50.

Alibaba – AI app impresses

Since the release of NVIDIA's figures last week, AI stocks have corrected sharply in some cases, and fears of a bubble forming are rife. A look at the sometimes ludicrous valuations shows that these concerns are justified. The situation is different for AI-related companies from China, which, on the one hand, still have exorbitant catch-up potential compared to their US peers, and on the other hand, can shine with fundamental surprises.

The newly launched Qwen app, the centerpiece of the group's AI strategy, was downloaded over 10 million times in just one week.

Qwen's rapid rise joins the list of fast-growing AI applications. While ChatGPT set a record pace three years ago and Meta's Threads gained millions of users thanks to Facebook and Instagram, Qwen is now setting new standards, especially in China. The market in China is particularly important for Alibaba, as ChatGPT is not available there.

The downloads were communicated via WeChat after the Company bundled and modernized its existing apps for iOS and Android under the Qwen brand. Analysts see the spread as a decisive factor for Alibaba's future valuation. In the coming months, Qwen is to be expanded into a fully-fledged AI agent – including shopping integration via Taobao, maps, food delivery, travel bookings, office tools, e-commerce, education, and health services. Group CEO Eddie Wu aims to transform Alibaba into an AI-centric tech giant.

The Bayer share continues to work on a long-term bottom. Alibaba scored a surprise success with the launch of the Qwen app. Several analysts see significant multiplication potential in Power Metallic Mines.