BUY RECOMMENDATION for Hensoldt! TUI with 60% upside potential! Resource Gem Nova Pacific Metals!

Nova Pacific Metals: Is the resource gem worth buying now?

Donald Trump is not only driving the price of gold. His focus on rare earths in Ukraine also shows that commodity stocks will likely perform well on the stock market this year. Another hidden gem in this environment is Nova Pacific Metals. The Company is focused on the development of multi-mineral projects in Canada. The demand for the country's resources has been demonstrated in recent weeks. After trade disputes with the US, new trade agreements were quickly concluded with China and Japan.**

In this positive environment, Nova Pacific's shares could become the next high-flyer. The Company is currently valued at less than CAD 15 million and is focused on developing the Lara project. This is a huge multi-mineral project located in a well-developed mining region in British Columbia, Canada. Gold, silver, copper, and zinc are among the resources within the volcanogenic massive sulfide (VMS) deposit. VMS deposits are formed by volcanic and hydrothermal activity on or under the seabed and are now known as important sources of precious and other metals.

Last week, Nova Pacific announced the strategic expansion of the Lara project. Three additional mineral claims totaling approximately 976 hectares have been acquired west of the existing Lara claims. In the early 2000s, the area was examined, and experts suspected large deposits in the VMS rock. However, commodity prices were different then and other topics were preferred on the stock market. As a result, the projects were not pursued further. Nova Pacific now wants to benefit from this. An extensive drilling program of around 10,000 meters is planned for the current year. This is already fully financed, and positive newsflow about the progress of the drilling should lead to the stock's discovery.

Opportunity for investors: Nova Pacific will present at the virtual investor conference IIF tomorrow, Tuesday (February 25, 2025) Register here for free).

Hensoldt stock: Is more than EUR 52 possible?

The Hensoldt stock is no longer an insider tip like Nova Pacific. Since Russia's attack on Ukraine, the German electronics group's stock has gained more than 300%. After a weak phase in 2024, the security has regained momentum in the current year and is trading at an all-time high of over EUR 45. Like its peer group colleagues Rheinmetall and Renk, Hensoldt is benefiting from the effects of the US disengagement from Europe and NATO. These will likely have to take their defense into their own hands to a much greater extent in the future. Sweden recently announced that it would increase its defense spending to 3% of GDP, with Germany and other countries likely to follow suit. Since the NATO target of 2% has not been met so far, Warbug analysts are discussing the beginning of a supercycle for the defense industry and the corresponding stocks. For Germany, the defense industry could also become a driver of jobs and economic growth.

Hauck Aufhäuser also speaks of a wake-up call – for investors, too. All three German defense stocks, Rheinmetall, Renk and Hensoldt, are still recommended as buys even at current price levels. Hensoldt, for example, generates around 50% of its revenue in Germany. This means that it should benefit strongly from the increase in defense spending to the 3% mark. The analysts currently have a price target of EUR 52 for the Hensoldt share. However, they suggest that there is more to it.

TUI: Opportunity to enter? The board says yes!

TUI's supercycle appears to be showing the first signs of cracking. For a long time, it seemed that the desire to travel in Germany and Europe would not suffer from the negative economic outlook. However, since TUI's latest quarterly figures, shareholders have been feeling nervous. The reason is the restrained booking trend for the current winter season 2024/25 and the summer season 2025. These are only about 2% above last year – with prices 4% higher. Since the publication of the figures about 2 weeks ago, the TUI share has lost about 20% in value and is currently trading at around EUR 6.60.

Deutsche Bank sees an opportunity to enter the market at this level. The analysts see a positive trend in the operating performance. As a result, the price target of EUR 11 has been confirmed. The experts, thus, see a price opportunity of around 60%. Incidentally, TUI CEO Peter Krüger also seems to find the current price level interesting. Last week, he bought TUI shares for EUR 20,000.

Nova Pacific is still an undiscovered commodity gem. This could change significantly in the coming months. The multi-mineral project offers gold, silver, copper, and more. If the news flow remains positive, it is unlikely that the market capitalization will stay under CAD 15 million for long. At that point, the stock would be a real bargain at the current level. Hensoldt is no longer a bargain, but the momentum continues, and the long-term prospects remain strong. At TUI, the first dark clouds are on the tourism horizon.