Another 200% price gain with Renk, thyssenkrupp or Almonty Industries?

Almonty Industries: Revaluation is underway, P/E ratio will be in single digits by 2026

Almonty's revaluation is underway, and the current consolidation offers an exciting entry opportunity or opportunity to buy more. The tungsten producer is on the brink of golden times. Tungsten is increasingly attracting investor attention. This is because it is a critical raw material and indispensable in many key industries – from aerospace, defense, and electronics to renewable energies. At the same time, tungsten is in short supply, with the world's largest producer, China, increasingly using it as a weapon through export restrictions. As a result, the US and all Western countries are desperately seeking alternative suppliers and are turning to Almonty, as the CEO confidently reported at the recent IIF Investor Conference. Click here for the video. Almonty is on the verge of commissioning the Sangdong mine in South Korea. Once production has been ramped up there, Almonty – which already operates a mine in Portugal and plans to expand it – will become the largest tungsten producer outside of China.

It is therefore not surprising that analysts at Sphene Capital see upside potential of over 200% for Almonty shares. In their latest study, they raised the target price from CAD 3.21 to CAD 5.20. The shares, which are also actively traded on German stock exchanges, are currently trading at CAD 1.55. With the ramp-up of the Sangdong mine, earnings per share are expected to reach CAD 0.19 as early as next year – with a continuing upward trend. This means Almonty is currently being traded with a single-digit P/E ratio.

And Almonty has a second share price driver: a molybdenum deposit near the Sangdong mine. Although the mine is not expected to go into production until 2026, the SeAH Group – a steel producer that supplies the SpaceX aerospace group, among others – has signed an exclusive contract to purchase the entire expected production volume at a minimum price. This naturally facilitates the financing of the development. At full production, the mine is expected to produce 5,600 tons of molybdenum per year, with an estimated mine life of 60 years.

Side note: After the shareholders approved the relocation of the headquarters to the US, the next logical step would be to list the shares on a US stock exchange. This should provide an additional boost to the share price.

Renk: Major order and target price increase

The Renk share is unstoppable. Yesterday, it rose again by 8% to over EUR 43. According to Hauck Aufhäuser, the transmission specialist could do even better. After a discussion with management, the analysts raised their price target from EUR 35.50 to EUR 55 and recommended buying the stock.

After the seemingly unstoppable rise in the share price and the Company's promotion to the MDAX, Renk has finally reported some operational news again. It will supply HMPT transmissions for the Bradley Fighting Vehicle (BFV) and Armored Multi-Purpose Vehicle (AMPV) platforms to the US. The volume of the two significant orders is around USD 150 million. Together with the equipment for Paladin howitzers and ammunition vehicles as well as the Multiple Launch Rocket System (MLRS), the orders show that Renk is also successful in the US. Delivery of the gearboxes is scheduled to begin in 2026 and be completed by December 2027.

Ian Pain, CEO of Renk America, commented: "As a long-standing partner of the US Army, Renk America remains committed to delivering high-performance transmissions for our soldiers in the field and for operational readiness. These orders reaffirm our commitment to providing reliable, proven solutions whenever needed."

thyssenkrupp: Marine division continues to drive the share price

thyssenkrupp's shares are also starting the new trading week with momentum. After last week's report in the Handelsblatt that the sale of the marine division TKMS to Rheinmetall had finally been canceled, a new exciting topic is making the rounds. Is the German government buying into TKMS? According to "Handelsblatt", a key reason for the failure of negotiations between thyssenkrupp and Rheinmetall was that Germany's largest defense company wanted the government to hold 25% of TKMS shares in the future. thyssenkrupp was not willing to accept this. As a result, the IPO of the naval division is now being favored.

However, talks with the German government are reportedly ongoing, as confirmed yesterday by a thyssenkrupp spokesperson. Whatever the future holds for TKMS, thyssenkrupp's shares continue to benefit. Yesterday, the security climbed above the EUR 9 mark – in January, it was still at EUR 4.

Almonty appears to be anything but expensive, with a single-digit P/E ratio for 2026. The current consolidation offers an exciting buying opportunity in view of the analysts' target price. The shares of Renk, Rheinmetall, and Hensoldt still face consolidation, even though the momentum could continue for a while. In the case of thyssenkrupp, the question remains whether TKMS can outshine the problems in the core business in the long term.