BYD, Power Nickel, Rheinmetall – Top high flyers with further potential

BYD – With "God's Eye" to an all-time high

The Chinese market leader in electric vehicles ended the week with a performance of 23% at USD 42.10. At one point, BYD even tested the magical USD 44 mark, which would have meant a new historic high, but it was rejected at the first attempt. Nevertheless, a buy signal could be generated in the coming trading week if the share price sustainably breaks through the level, as the Relative Strength Index still shows upside potential with 71 points.

The reason for the upward surge was the "Eye of God", a self-developed driver assistance system that BYD plans to present at a press conference today. The presentation will focus on the strategy for smart vehicles, which are intended to be affordable for everyone in the future.

In addition to the revolution in driver assistance systems, global expansion remains at the top of the agenda. Due to BYD being subject to punitive tariffs in the US and Europe, the Company, co-financed by Warren Buffett, is turning its attention to Latin America and Southeast Asia regions.

In its latest study, the US investment bank JPMorgan reiterated its target price for BYD of HKD 475, the equivalent of USD 60.97. The buy rating remains: "Overweight".

Power Nickel – Resources without limits

Although commodities such as copper, nickel, and platinum are trading far below their historical highs, Power Nickel continues to rise from strength to strength. Within 12 months, the stock has achieved a performance of over 784%. Investors, including investment legends Robert Friedland and Rob McEwan, recognize the treasure the Canadians hold in their hands with the Nisk project in Québec.

The developments that have taken place in recent months are almost unbelievable. Originally started as a nickel project to build Canada's first CO2-neutral nickel mine, Nisk is increasingly developing into a first-class polymetallic project. In addition to nickel, significant quantities of copper with a mineral content of 8% have been found, along with the precious metals gold, silver, and platinum.

Positive results from the fall campaign in the Lion Zone were announced again last week, which continued to deliver excellent intersections and grades consistent with the interpreted geological modeling and expand the mineralized area of high-grade copper, gold, silver and platinum group metals within the zone. The highlight was drill hole PN-24-095a, which tested the interpreted plunge of the Lion Zone below previous drill holes. It returned 10.60% copper equivalent over 5.35 m within 3.61% copper equivalent over 19.40 m.

In order to focus on the Nisk project, the announced spin-off and outsourcing of the Golden Ivan assets and certain Chilean assets into the separate company Chilean Metals was also carried out. Existing shareholders received 50% of the shares in Chilean Metals, with Power Nickel continuing to hold the other half.

Rheinmetall - Another billion-dollar deal

After reaching new all-time highs at EUR 775, the integrated technology company's share price began to consolidate. However, the interim low at EUR 706.40 could have already signaled the short correction's end and reduced the overbought condition. Whether an investment in the arms company is still worthwhile in the long term remains to be seen. Despite bulging order books, the current valuation appears too ambitious.

Last week, the Düsseldorf-based company received a new multi-billion order from the German Bundeswehr. A further framework agreement has enabled Rheinmetall to expand its position as a central technology partner. The contract, which was concluded with the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), includes the delivery and modernization of up to 368 state-of-the-art train systems and extends to the end of 2030. The contract's total value amounts to a maximum of EUR 3.1 billion.

The first significant step in this contract is the firm order worth EUR 417 million, which includes the modernization of 68 existing soldier systems and the procurement of 24 new ones. These systems significantly improve combat operations by directly networking the soldiers with the armored systems, which Rheinmetall highlights as a major technological advancement.

According to press reports, BYD will present the "Eye of God", a self-created driving assistance system, at a press conference today, which has caused the stock to rise ahead of the event. Rheinmetall reports another billion-dollar order from the German armed forces. Power Nickel was again able to report positive drilling results.