December 2nd, 2024 | 07:30 CET
Almost 200% upside potential! Plug Power, Renk, and F3 Uranium!
Uranium stocks from North America are likely to have a strong year in 2025. Russia and the US have imposed mutual export and import bans. At the same time, the US wants to triple its nuclear energy capacity. As a result, analysts see almost 200% upside potential for the Canadian uranium explorer F3 Uranium. The majority of experts also expect Renk's share price to rise. However, its performance this year is well behind that of Rheinmetall and Hensoldt. Plug Power is also likely to be among the disappointments of the year. However, JPMorgan believes the hydrogen company is well positioned and includes it in its list of top sustainability picks for 2025. Rightly so?
time to read: 3 minutes
|
Author:
Fabian Lorenz
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , RENK AG O.N. | DE000RENK730 , F3 URANIUM CORP | CA30336Y1079
Table of contents:
"[...] The VERRA certification adds credibility to dynaCERT's emission reduction technologies by demonstrating compliance with internationally recognized standards for carbon emissions reductions and sustainable development. [...]" Jim Payne, CEO, dynaCERT Inc.
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.
Tag cloud
Shares cloud
F3 Uranium: Analysts see fair value at CAD 0.60
The analysts at Red Cloud Securities see almost 200% upside potential for F3 Uranium. Their price target is CAD 0.60. The share of the Canadian uranium explorer is currently trading at just over CAD 0.20. The upcoming drilling program is already financed by a capital increase placed in October at CAD 0.40 per share. Accordingly, investors can currently enter at a favorable price.
The Company holds three properties containing uranium in the PLN project, covering a total area of 42,961 ha in the Athabasca Basin in western Canada. The region is a hotspot for the uranium industry. This increases the probability of a successful project, creates takeover potential, and reduces costs due to existing infrastructure.
The analysts have rated the summer drilling program as positive. The data published by F3 so far is promising: uranium grades (U3O8) over lengths of 12 to 15 meters with percentages ranging from 7% to 9.4% at the top end. The last drilling in the summer of this year alone extended the uranium-bearing zone by over 700 meters. Interested investors should position themselves before the next drilling results.
Plug Power: Top Sustainability Pick 2025
Plug Power has received a surprise endorsement from JPMorgan. The major US bank considers the hydrogen specialist to be one of the top sustainability picks for 2025. Even though the signals for sustainable investments are currently mixed, selected stocks are well-positioned to benefit from ESG catalysts. They are able to capitalize on macroeconomic tailwinds as sustainable investing continues to evolve. These include Plug Power.
Plug Power is well positioned with its focus on hydrogen fuel cells. The Company's strategic positioning in green energy solutions, combined with potential tax incentives, makes it an attractive prospect for ESG-oriented investors looking to benefit from the green transformation. A key factor will be the anticipated finalization of the IRA 45V Production Tax Credit Guidance. This development could resolve project delays, particularly in electrolysers, and drive higher revenue growth for Plug Power.
Renk: After the price decline and change of management
Renk's stock is certainly the disappointment among the German defense stocks in 2024. While Rheinmetall has more than doubled and Hensoldt has seen a gain of almost 50%, Renk shareholders have so far had to absorb a loss of a good 20%. It should be noted, however, that a relatively high proportion of Renk's revenue comes from sectors outside defense. But overall, it is clear that the Company was listed as a defense stock and has not lived up to those initial expectations. Currently, the stock is trading at EUR 20, just above the year's low.
Whether the announcement of CEO Susanne Wiegand's departure, effective January 31, 2025, is due to the poor performance is unknown. In any case, COO Dr. Alexander Sagel will take over the position of CEO on February 1, 2025. Sagel: "I am delighted to take over the management of such an excellently positioned company as the successor to Susanne Wiegand. I would like to thank the RENK Group's Supervisory Board for their trust. Under Susanne Wiegand's leadership, the RENK Group has achieved exceptionally strong growth, which we will continue in the next phase with an equally strong focus on the operational and technological development of the Group. As a team, we will focus all our efforts on further consolidating the RENK Group's position in a growing market and sustainably securing its future – in the interests of our customers, our employees, our investors and all other stakeholders."
Analysts remain positive about Renk shares. According to marketscreener.com, 7 of 9 analysts recommend Renk shares as a "Buy", with only 2 advising to "Hold." There are no sell recommendations. Most recently, Hauck Aufhäuser confirmed the "Buy" recommendation. The price target is set at EUR 35, which is more than 50% above the current level.
The uranium market will likely remain hot in 2025, and F3 Uranium offers an attractive entry opportunity. Analysts see significant upside. The chart does not support a purchase at Renk, but analysts remain convinced. By contrast, there are many question marks surrounding Plug Power and the entire hydrogen market. In particular, the US market, which is important for Plug Power, is characterized by great uncertainty regarding the upcoming presidential elections. Therefore, buying the stock is not an obvious move at the moment.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.