Almost 150% upside potential! Plug Power, Bayer, Planethic Group

Planethic Group: Transformation offers over 100% upside potential

Is Planethic Group (formerly Veganz Group) offering the buying opportunity of the fall? The stock was one of the turnaround stories of the first half of the year. Within a few months, it rose from EUR 5 to EUR 20. The correction since July came as no surprise, but its extent is surprising. However, at EUR 10.55, there is a great opportunity to buy or add to your position. In addition to the continued positive news flow, First Berlin has started coverage and the verdict is clear: "Buy", with a price target of EUR 26.

Analysts see good reasons for the nearly 150% upside potential: The Berlin-based company is positioning itself this year as a "BevTech" pioneer with its proprietary 2D printing technology for dried, sliced, and packaged beverages. Initially, the Mililk® brand—a long-life, dried oat milk—is to be launched on the US market. Distribution agreements are already in place with Jindilli Beverages, a supplier to major chains such as Starbucks and McDonald's. If the ramp-up is successful, First Berlin expects Planethic to gain market share in the billion-dollar non-dairy category thanks to cost advantages and its sustainability profile. For 2027, analysts forecast an increase in revenue to EUR 117 million (2024: EUR 10.8 million) and an EBITDA margin of around 11%. Earnings per share are then expected to reach EUR 0.50 to the study.

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The estimates may even be too conservative. In its latest press release on its cooperation with the US group Vitiprints, Planethic emphasized that global demand for Mililk® is growing strongly and now exceeds 400 million liters per year. This means that the sales potential is likely to be well over EUR 200 million, especially since printed oat milk is only the beginning. The range is to be expanded to include other milk alternatives and juices.

Plug Power: Another 50% increase in share price?

Plug Power's share price is actually ripe for a correction. It has more than tripled in value within six months and is once again worth more than USD 4 billion on the stock market. However, the share price has remained stable so far, trading above USD 3. Even two surprises did not cause a sustained slide in the share price. Both the capital measure and the departure of the CEO had the potential to do so.

According to analysts at TD Cowen, there is even more to come for Plug shares. After talks with management, the "Buy" recommendation was confirmed, and the price target was raised from USD 3 to USD 4.50. Management plausibly explained its plans for reaching profitability. Among other things, cost reductions, scaling, and price adjustments are expected to contribute to this. Plug Power sees short-term growth potential, particularly in the areas of electrolysers and material handling systems.

However, the hydrogen pioneer is currently still burning through millions. It has therefore taken advantage of the share price increase and recently secured around USD 370 million in fresh capital through a warrant transaction.

Not everyone sees Plug Power's future as so rosy. For example, Clear Street believes the Company still has a long way to go before it breaks even. Analysts consider the share price of USD 3.50 to be fairly valued and recently adjusted their recommendation from "Buy" to "Hold."

Bayer: Analysts cautious

And what do analysts say about Bayer shares? The Leverkusen-based company's shares have gained 38% in the current year, twice as much as the DAX.

However, there have been remarkably few analyst comments in recent weeks. Goldman Sachs was the last to comment, slightly reducing its price target from EUR 35 to EUR 34.50. However, this was based solely on exchange rate changes. It is noteworthy that the analysts noted that their estimates for Bayer's third quarter are well below average expectations. EBITDA is 11% lower, and earnings per share are as much as 45% lower. If Goldman is right, there could be numerous negative comments when Bayer reports on the third quarter in November—an exact date has not yet been set.

Overall, analysts are currently somewhat cautious about Bayer. According to marketscreener.com, 12 out of 19 analysts rate the pharmaceutical and agricultural group's stock as "Hold", seven experts recommend buying, with the average price target being EUR 28.50. Bayer shares are currently trading at EUR 26.80.

The repositioning at Planethic Group is bearing fruit and should soon have a noticeable impact on sales and profits. In any case, the potential appears enormous, and analysts are also convinced. Plug Power appears to be winning back investors and analysts. However, there is still a long way to go before it breaks even. Bayer has already performed well. Buying the stock does not seem compelling at the moment.