Buy Nordex shares? RENK is betting on vehicle manufacturing! Is Graphano Energy too cheap?

Graphano Energy: Shares far too cheap?

No battery works without graphite – whether in electric vehicles, stationary energy storage systems, or smartphones. At the same time, over 60% of global graphite mining and processing takes place in China. This creates geopolitical dependencies that Western countries are now eager to reduce. As a result, Canada, the US, and the EU are actively supporting new projects to diversify supply chains.

This is what makes Graphano Energy's stock so exciting. The Company recently announced the start of the first drilling program at its 100% owned Black Pearl project in Quebec, Canada. With approximately 600 meters of diamond drilling, the Company plans to test several high-priority targets that were previously identified through geophysical and geological work. The goal is to expand the graphite mineralization discovered to date and to define the potential of the deposit more accurately. Back in 2024, Graphano reported remarkable grades of up to 17.9% Cg over nine meters from initial channel samples – an indication of a promising deposit.

The Black Pearl project is part of Graphano's strategic pipeline, which also includes the flagship Lac-Aux-Bouleaux and Standard Mine projects. All projects are located in Quebec, a region with a long-standing tradition of graphite mining and access to skilled labor and clean hydroelectric power. This positions Graphano in one of the most attractive jurisdictions for critical battery minerals, with clear locational advantages over many international competitors.

Next year, the feasibility study should reveal Graphano's full potential. Until then, drilling will be carried out, and the results are likely to boost the share price further. The Canadian company is still valued at less than CAD 10 million. Given its great potential, this seems far too low.

Important date: On October 8, 2025, Graphano Energy will present at the virtual 16th International Investment Forum, IIF. Private and institutional investors can register here to participate free of charge. Many exciting German and international small and mid-caps will be presenting.

Nordex: Concerns exaggerated?

Discussions about political headwinds in Germany and the US have recently weighed on Nordex's share price. Analysts at mwb research advise not to overestimate this. Despite recent discussions about possible delays in the expansion of wind power in Germany, the market for onshore wind remains on a growth path. In 2024, a net 2.55 GW of new capacity was added, bringing the total output to around 63.5 GW. Even if the official government targets of 10 GW of new capacity per year until 2030 are adjusted downward, mwb continues to see considerable market potential. With a market share of around 32% and order intake of 1.06 GW in Germany in 2024, Nordex is in a strong starting position. Depending on the scenario, Nordex could secure between 1.9 GW and 3.8 GW of orders annually in Germany alone in the future, corresponding to an order volume of EUR 1.7 billion to EUR 3.4 billion.

Furthermore, Nordex's international position remains robust. The order backlog stood at EUR 14.3 billion in mid-2025 (previous year: EUR 11.0 billion), with strong growth in the service segment. In the second quarter of 2025, the Company recorded 2.3 GW in new orders, an increase of 82% over the previous year. According to mwb, short-term market concerns are therefore more of a sideshow. Analysts point to solid fundamentals such as rising service revenues, improved margins, growing cash flows, and clear growth prospects. Accordingly, mwb confirms its "Buy" recommendation with a price target of EUR 26.

The latest order announcement shows that Nordex now has a very broad international presence. It will supply 19 N149/5.X turbines for a wind farm in southern Ecuador. Installation of the first turbine is scheduled for October 2026, with the wind farm due to go into operation in March 2027. This is Nordex's first project in the South American country. The wind farm will support Ecuador's energy supply, especially during the dry season in the Amazon region, and help reduce the risk of blackouts.

RENK gears up for the supercycle

RENK shares are currently struggling to break through the EUR 70 mark. This puts a temporary halt to the price rally that started in mid-August from around EUR 56. Analysts at Berenberg recently confirmed their "Buy" recommendation for RENK shares. They see the fair value at EUR 84.

Operationally, however, the specialist for military vehicle transmissions is going full throttle. And it is gearing up for the supercycle in the defense industry. In the presence of Bavarian Minister President Dr. Markus Söder, RENK launched a production concept at its headquarters in Augsburg. This modular concept is designed to support the transition to modern, industrial small-batch manufacturing. RENK had previously announced that it would invest around half a billion euros in capacity expansion and research and development over the next four to five years.

The concept, which uses proven methods from the automotive industry, allows different transmission variants to be assembled on the same line, creates economies of scale, and serves as a blueprint for other RENK locations. This will enable capacities at all locations to be flexibly adapted to the increased order situation—a key to sustainable growth and robust, localized manufacturing.

"The current geopolitical situation is characterized by crises and conflicts. This makes it all the more important that we consistently strengthen our industrial capabilities in Germany and also in Europe. We as the RENK Group are leading the way here at our Augsburg location and are ready to make our contribution to Europe's defense capabilities. The necessary efforts require close cooperation between industry and politics," said RENK CEO Dr. Alexander Sagel.

Graphite is a key raw material and geopolitically charged. Graphano Energy has exciting assets with its projects in North America. The stock appears inexpensive, and ongoing drilling ensures a lively news flow. Investors can currently position themselves early on. RENK's investment in manufacturing is both the right and necessary move. The defense industry must automate in order to be able to fulfill the flood of orders efficiently and cost-effectively. In the past, the solar and wind industries have repeatedly become political pawns. Nordex shareholders should always keep this in mind.