Big News for Nel, Evotec, and dynaCERT! Stock set for +100% or -20%?

dynaCERT: Major breakthrough and opportunity for share price multiplication

Last week, the big moment finally arrived. VERRA, the provider of the globally recognized quality standard for certificates, certified dynaCERT's product range. According to the experts at researchanalyst.com, this opens up a new dimension for dynaCERT because the implementation of the ESG-compliant HydraGEN solutions in the international vehicle market offers the opportunity for exponential growth.

But what exactly does VERRA certification mean? dynaCERT has developed the HydraGEN technology in recent years to reduce the pollutant emissions and fuel consumption of commercial vehicles through the use of hydrogen. The patented system allows for the retrofitting of conventional diesel engines. The focus is particularly on users of heavy vehicles in the mining, oil and gas, transportation, and power generation sectors. Last year, the Company achieved its first sales successes, but many potential customers wanted to wait for the VERRA certification to have something concrete for their ESG reports and to receive CO2 certificates. This is now possible, and the CO2 certificates will be shared between dynaCERT and the customer.

dynaCERT's share price reacted to the news with a significant increase last week. The current consolidation offers an exciting entry point. Especially since the new top executive, Bernd Krüper, is expected to drive sales growth in Europe and perhaps even secure notable partnerships. Further news flow is expected by the end of the year.

Evotec: More than 100% possible, but caution is advised!

Evotec's stock could also more than double, at least according to Warburg Research. The analysts have reiterated their "Buy" rating with a target price of EUR 14. The biotech company's stock is currently trading at just over EUR 5. However, the analysts are warning about the upcoming quarterly figures. With slightly declining revenue, investors should brace for a significant earnings drop. However, this is already reflected in the current valuation. After all, it is common for a new management board to first write off any "skeletons in the closet", which the new Evotec CEO is expected to do. The publication of the Q3 figures is scheduled for November 6.

Deutsche Bank advises caution with regard to Evotec shares. Its analysts do not believe the poor operating performance is fully priced in. They rate Evotec shares as "Sell" and consider a price target of EUR 4 to be fair. This means that the share price could fall by a further 20%.

Nel: Q3 not convincing

Nel ASA shareholders are now also accustomed to falling share prices, and there seems to be no improvement in sight. The quarterly figures reported yesterday did not inspire investors. The hydrogen specialist increased its revenue by 21% to NOK 366 million in the third quarter of 2024. However, the Norwegians are struggling to make any headway in reducing their losses. EBITDA for the quarter was NOK -90 million (Q3 2023: NOK -62 million). The net result improved from NOK -167 million to NOK -115 million. But Nel remains highly unprofitable. The much-publicized order intake is even declining. In the third quarter of 2024, orders worth NOK 161 million were secured. In the same quarter of the previous year, the figure was more than twice as high at NOK 338 million. On a positive note, Nel had liquid assets of NOK 1.9 billion at the end of the quarter.

"Nel is in solid shape. We deliver proven technology from state-of-the-art GW production facilities while driving the development of next-generation technology with significantly lower costs and higher efficiency. We are also bringing world-class EPC partners on board and have a strong financial position. The market has been weak for some time, but we are well positioned to benefit from the expected upturn and are seeing the first signs of improving market conditions," says Håkon Volldal, President and CEO of Nel.

A purchase of Nel shares is not compelling. dynaCERT, although significantly smaller, appears to be significantly more promising. With VERRA certification, it can finally kickstart sales efforts. At Evotec, a lot seems to be priced into the current share price. However, it may be worth waiting for the quarterly figures before making any moves.