Almonty Industries, PVA TePla, and GEA Group: Three Growth Stocks with Powerful Catalysts

Almonty: The Big Moment Has Arrived

The days when investors in Almonty Industries had to rely primarily on the future potential of the Sangdong Mine are over. Processing of the mined ore has been underway in South Korea since June. With this, the tungsten producer is taking the decisive step from mine developer to production company. This opens up a new valuation phase for the stock. The ramp-up in production coincides with an exceptionally favourable market environment. China controls around 88% of global tungsten production and has increasingly restricted exports of this strategically critical metal. At the same time, the US and its allies need reliable supply chains outside of China.

Due to its extremely high melting point and exceptional hardness, tungsten is virtually irreplaceable in numerous industrial applications. The metal is used, among other things, in machine tools, semiconductors, aircraft, and defense equipment. According to Almonty's estimates, defense applications currently account for 10 to 12% of tungsten demand; within the coming year, that share could rise to more than 20%. At the same time, Western defense contractors are expanding capacity, and governments are replenishing strategic reserves.

This is where Sangdong comes into play. The mine was once one of the world's most significant tungsten deposits but was shut down in the early 1990s due to low commodity prices. Since its acquisition in 2015, Almonty has invested more than USD 100 million in its revitalization. Now, after more than 30 years, Sangdong is returning to production.

The processing plant for the first phase of expansion is designed to handle approximately 640,000 metric tons of ore per year. This is expected to yield about 2,300 metric tons of tungsten concentrate. The prospects are promising: the mine's expected lifespan exceeds 45 years. The average ore grade is approximately 0.51% tungsten trioxide, which is about three times higher than the global average.

Ample material is already available for the start-up. At the end of the first quarter, Almonty had approximately 120,000 metric tons of ore in stockpiles. An additional 19,700 metric tons were added in the second quarter. In total, the stockpile thus comprises approximately 139,700 metric tons of ore with an average grade of 0.25% tungsten trioxide. The material initially used deliberately has a lower ore grade to run in the plant and optimize processing. As production ramps up, higher-grade sections will be processed next. According to the company, at current tungsten prices, the existing stockpile represents an illustrative gross processing value of approximately USD 68 million.

The expanded purchase agreement with Global Tungsten & Powders, a subsidiary of the Austrian Plansee Group, provides additional planning certainty. The agreement covers approximately 90% of production from the first Sangdong expansion phase. The term was extended from 15 to 21 years, and the agreed-upon volume was increased by 40% to 4.41 million MTUs. At the same time, the prices Almonty can achieve have improved by about 6.3%.

At current tungsten prices, the company estimates the resulting contractually guaranteed annual revenue at approximately USD 490 million.

The contract applies exclusively to the first expansion phase. The second phase, planned for 2027, is not yet included in this figure. This phase is expected to increase annual processing capacity to approximately 1.2 million metric tons of ore. As a result, tungsten concentrate production could double to about 4,600 metric tons. At full capacity, Sangdong would theoretically be able to meet approximately 40% of the demand for tungsten outside of China.

A planned tungsten oxide plant and the neighbouring molybdenum project hold further promise. In the long term, this could result in a fully integrated value chain. Almonty has also moved up to a different league on the capital market. Since the end of June, the stock has been included in both the Russell 1000 and the broader Russell 3000. This brings the stock more into the spotlight of US institutional investors and index-tracking funds.

A potential collaboration with US government agencies adds to the upside potential. Analysts at D.A. Davidson view the strategic framework as an important short-term catalyst. They do not expect government ownership, but rather a structure to coordinate Western tungsten supply. This is not yet a confirmed agreement. A concrete announcement could therefore have a significant impact on the share price.

https://youtu.be/D39rKLK2MN0

Cantor Fitzgerald confirmed a "Buy" rating with a price target of USD 25.50 following the start of processing. D.A. Davidson raised its target from USD 25 to USD 33 after a meeting with CEO Lewis Black. The key factors were progress at Sangdong, higher price assumptions, and the additional projects. A recent study by Diamond Equity Research assigns a fair value of CAD 31.80 to Almonty shares. Compared to the current price of around CAD 17.20, this represents upside potential of over 85%. Moreover, the improved terms of the expanded GTP offtake agreement have not yet been factored into the valuation model, so analysts believe there could be additional upside. For 2026 and 2027, Diamond Equity Research forecasts revenue of CAD 545 million and CAD 1.06 billion, respectively and earnings per share of CAD 0.72 and CAD 1.68, respectively.

All in all, Almonty remains a speculative stock with high upside potential, offering risk-tolerant investors the most exciting and direct investment in a Western tungsten supply. However, following the steep rise in the share price, much of this optimism is already priced in. The key factor now will be whether the production ramp-up succeeds without major delays and whether Almonty actually achieves the announced production volumes. If the company stays on track, however, Sangdong has the potential to make Almonty one of the most strategically important tungsten producers in the Western world. Dip buying therefore remains an attractive option.

PVA TePla: Orders Offer Hope

PVA TePla is writing an exciting chapter in German technology history. The German specialty machinery manufacturer for material production and testing builds systems for producing and processing high-tech materials and inspecting them for even the smallest defects. Its operations are divided into two divisions: Material Solutions and Metrology. The first division focuses on systems for the production and refinement of modern materials and crystals, such as silicon carbide or indium phosphide. These are used, among other things, in semiconductors, power electronics, lasers, and optical applications. The Metrology division focuses on measurement and testing systems that examine materials and components using acoustic, optical, or chemical methods. This makes it possible to detect even tiny cracks, voids, or other manufacturing defects.

After a challenging year in 2025, order intake is now showing a clear upward trend. In the first quarter of 2026, orders totaling EUR 121.6 million were received. This represented a 164% increase over the previous year and was among the highest quarterly figures in the company's history. Notably, both business segments contributed to this growth. In the Metrology segment, order intake nearly tripled to EUR 62.7 million. In the Material Solutions segment, order intake doubled to EUR 59 million. The orders include, among other things, solutions for high-bandwidth memory chips required for AI applications and data centers, as well as the first systems for the production of indium phosphide crystals.

However, this turnaround has not yet been reflected in the income statement. Revenue fell by 7% to EUR 54.9 million in the first quarter. EBITDA plummeted from EUR 8.2 million to EUR 1.4 million. In addition to low capacity utilization, investments in personnel, infrastructure, and organizational restructuring weighed on the results. Furthermore, portions of the new orders will not contribute to revenue until 2027.

But that is precisely what makes the stock so attractive. The surge in orders is outpacing earnings and could lead to a significant acceleration starting in 2027. For 2026, PVA TePla expects revenue of between EUR 255 and EUR 275 million and EBITDA of EUR 26 to 31 million. Next year, revenue is expected to exceed the EUR 300 million mark for the first time. In the medium term, management is targeting around EUR 500 million.

Deutsche Bank also believes the share has further upside potential. Analysts recently reaffirmed their "Buy" recommendation and set a price target of EUR 50. Investors should still expect weak margins when the upcoming earnings are released on August 6. However, the key factor is whether the high level of order intake will continue. If so, the market is likely to increasingly focus on the earnings turnaround expected for 2027. For the coming year, the analyst consensus estimates earnings per share at EUR 1.29, valuing the stock at a 2027 P/E ratio of 25. The average price target among the 10 banks and research firms covering the stock is EUR 44, which corresponds to a potential of just over 35%.

GEA: Higher Forecast, Higher Prices?

While Almonty is ramping up production and PVA TePla is poised for a recovery, business at the GEA Group is already in full swing. The machinery and plant manufacturer significantly exceeded expectations in the second quarter. Order intake rose by 14.2% to EUR 1.49 billion. Revenue improved by 10% to EUR 1.44 billion. Organic growth even reached 11%. Profitability was also impressive. EBITDA before restructuring expenses climbed to EUR 250 million, exceeding the consensus estimate by EUR 17 million. The margin reached 17.4%.

Following the strong quarter, management raised its full-year targets. Instead of organic revenue growth of 5 to 7%, GEA now expects 6 to 8%. The target range for the EBITDA margin was raised from between 16.6 and 17.2% to between 17.0 and 17.4%. The return on capital employed is now expected to reach 36 to 40%.

GEA is benefiting from robust demand for equipment for the food, beverage, and pharmaceutical industries. These markets are experiencing structural growth and are less susceptible to economic cycles than traditional mechanical engineering. However, the stock has already had a strong run and is trading near its all-time high. The stock is no longer undervalued. The P/E ratio for 2027 stands at 18, which is above the industry average of 14. However, the combination of above-average growth, rising margins, and a solid balance sheet justifies a valuation premium. Investors can use weaker days to enter the market.

Of the three companies presented, Almonty offers the greatest potential but also carries the highest risk due to its ongoing production ramp-up. PVA TePla is a bet that the strong order intake will translate into significantly higher earnings starting in 2027. GEA, on the other hand, stands out as a reliable, high-quality stock with a recently raised forecast.