ALL-TIME HIGH for Siemens Energy! After strong results, should investors be buying RENK and Graphano Energy shares?

Graphano Energy: A critical resource for the US government

Graphite is considered a critical mineral by the US, the EU, and Japan. Without it, no battery works - neither in electric vehicles nor in stationary energy storage devices or smartphones. As with rare earths and several other strategic materials, China dominates the global graphite market, creating a substantial supply risk for the West. Western countries cannot afford this for their industry. China has repeatedly demonstrated that it is willing to use its raw material dominance as a geopolitical lever.

While Europe appears to be standing in its own way when it comes to securing critical raw materials, the US is going full throttle. And Canada is also supporting the sector. Graphano Energy benefits from both with its graphite projects in Quebec, Canada. The flagship Lac Aux Bouleaux project is located in the immediate vicinity of Northern Graphite's Lac des Îles mine - currently the only active graphite mine in Canada. Through an existing cooperation agreement, Graphano has access to Northern Graphite's processing facilities. This means that significantly less investment is required to bring Lac Aux Bouleaux into production, saving time. And, of course, there is also the possibility of a takeover by Northern Graphite.

And there are even more reasons to buy Graphano Energy shares. The Standard Mine project is also already at an advanced stage, and the resource figures are impressive. The resource estimate is set to be updated later this year, and a feasibility study is planned for the coming year. East of the Standard Mine lies the 84-claim Black Pearl project. A graphite deposit has already been identified with a width of 300 meters and a strike length of 1,200 meters. The drilling results to date are convincing. They show consistent near-surface mineralization along several conductive zones that remain open in all directions. The drill holes returned peak grades of up to 15.95% graphitic carbon. Incidentally, Black Pearl could also make use of Northern Graphite's processing facility.

https://youtu.be/zENi0CH9ypE?si=OymMeHiLgHsh5itz

Siemens Energy bursting with strength

Yesterday, Siemens Energy shares continued their price surge from Friday and rose to a new all-time high. Despite a valuation of almost EUR 100 billion, investors continue to snap up shares following convincing quarterly figures and positive analyst comments.

CEO Christian Bruch expressed confidence in the figures: "Our businesses have once again delivered a strong quarter, continuing the positive performance of the current fiscal year. The forecast raised in the second quarter will be met – we are currently at the upper end of the target range. Following the early repayment of the federal guarantees, the dividend ban has now also been lifted. This puts us in a position to pay our shareholders a dividend earlier than expected. These are all significant successes, and our focus remains on profitable growth, which we ensure through excellent project execution."

Siemens Energy increased its revenue by 13.5% to EUR 9.7 billion in the third quarter. Net income improved from EUR -102 million to EUR 697 million. Order intake was cause for celebration. At EUR 16.6 billion, the highest order volume in a three-month period in the Company's history was achieved.

On the analyst side, Jefferies in particular was bullish. Revenue growth is expected to accelerate in the future, while margins should improve as well. Analysts see the fair value of Siemens Energy shares at EUR 134. RBC rates the DAX-listed company as "Outperform" and sets a price target of EUR 130. Deutsche Bank confirmed its "Buy" recommendation and raised its price target from EUR 115 to EUR 120. By contrast, the analysts at UBS remain difficult to take seriously: they praised the figures, yet still recommend selling with a price target of just EUR 38.

RENK: Figures convince analysts

While Siemens Energy shares are trading close to their all-time high, RENK, like all defense stocks, is currently struggling. At least last week's figures for the first nine months of 2025 were quite convincing. The supplier of drive solutions for military and civilian applications is growing and investing in expanding its production capacity.

The Company increased its sales revenue by 19.2% to EUR 928 million in the first nine months of the year. Unsurprisingly, the defense business was the driving force behind this growth. Revenue in this segment climbed by 25.2% to EUR 690 million. Adjusted consolidated EBIT rose disproportionately by 25.5% to EUR 141 million. This enabled RENK to improve its adjusted EBIT margin by 0.8 percentage points to 15.2%. Compared to Rheinmetall and Hensoldt, RENK can score points this year with a respectable order intake. The order volume rose by 45.2% to EUR 1.25 billion.

RENK CEO Dr. Alexander Sagel commented: "Our business performance in the third quarter shows that we have consistently continued our strong growth course, driven by high demand in the defense sector. In addition, with the launch of our modular production concept in Augsburg in September, we have taken another significant step toward expanding capacity and increasing efficiency."

Analysts are rewarding this development. Jefferies confirmed its "Buy" recommendation for RENK shares following the figures. The weaker revenue was more than offset by the higher margin. The analysts' price target remains at EUR 80.

The level of profit was also a positive surprise for Deutsche Bank analysts. Order intake also exceeded expectations. The analysts recommend buying RENK shares and see the fair value at EUR 75. Yesterday, the share price was trading at just under EUR 64.

Siemens Energy remains unstoppable. The order intake signals that the Company will continue to grow. However, investors should not be surprised by price setbacks in view of the valuation. Graphano Energy is a largely undiscovered gem in the commodities sector. If the positive news flow continues, it can only be a matter of time before the stock breaks out to the upside. RENK currently appears to be emerging as the favorite among German defense stocks.