Comeback 2026! Tenfold potential? Evotec, Gerresheimer, and Desert Gold shares!

Desert Gold Ventures: Chance of a tenfold increase

Are there still undervalued gold stocks? Desert Gold shares have been trading sideways for about two years. But a new PEA is fueling speculation. Analysts at GBC Research see the fair value of the exploration company's stock, which is also actively traded on Tradegate, at CAD 0.81. The security is currently trading at CAD 0.08, which means there is a chance of a tenfold increase.

For a long time, it was unclear how Desert Gold's SMSZ project in Mali would proceed. But the recently published PEA has finally shed light on the situation. The flagship project will initially mine the near-surface oxide resource of 113,100 ounces of gold. Open-pit mining saves time and costs. At a gold price of USD 2,850 per ounce, the PEA yields an after-tax NPV (10%) of USD 61 million, an IRR of 57% and a projected payback period of 2.5 years. Based on a recent spot gold price of USD 4,070, the after-tax NPV (10%) rises to USD 124 million, the IRR to 101%, with a shortened payback period of 2.1 years. The mine has a life span of 10 years. And as mentioned, this only refers to the oxide resource of SMSZ, which comprises less than 10% of the project's total gold resources. The further potential is correspondingly large.

And then, of course, there is the Tiegba Gold project in the south of Côte d'Ivoire. This is not yet as advanced, but Desert Gold believes it has the potential for several million ounces. It is an exceptionally large gold deposit that has never been tested by drilling. An extensive gold anomaly measuring approximately 4 x 2 km has already been identified.

GBC analysts currently see Desert Gold as a "Buy" opportunity. In their view, the Company's current valuation amounts to approximately CAD 217.91 million. This corresponds to a net asset value (NAV) of around CAD 0.81 per share, or roughly EUR 0.50 per share.

Gerresheimer: Buy now?

With a price loss of over 60%, Gerresheimer shares were among the disappointments on the German stock market in 2025. Forecast changes, a failed takeover, BaFin investigations, and management changes drove investors away from the specialty packaging manufacturer's shares.

At least there is now some clarity in the BaFin matter. Shortly before Christmas, the Company announced that it would correct all revenues from bill-and-hold agreements booked in the 2024 consolidated financial statements in the amount of around EUR 28 million and recognize them as revenue in 2025. The legal investigation revealed that the recognition of revenues from bill-and-hold agreements did not comply with IFRS requirements across the board and that these revenues were systematically recognized too early. The correction of this revenue from bill-and-hold agreements is expected to reduce the revenue of EUR 2.036 billion reported in fiscal year 2024 by around 1%, the reported adjusted EBITDA of EUR 419.4 million by around 1%, and the reported adjusted EPS of EUR 4.67 by around 2%. The change, therefore, appears to be less severe than feared.

This view is shared by analysts at Jefferies. They confirmed their "Buy" recommendation for Gerresheimer shares following the announcement, with a target price of EUR 34.10. The share is currently trading at around EUR 27.

Evotec: No imagination

Investors who had bet on a comeback for Evotec in 2025 after a horrific 2024 were disappointed. In the year that is soon coming to an end, the German biotech company's stock has lost around 35% of its value.

The strategy of the new management has so far failed to convince investors. Most recently, even a major shareholder exited its Evotec position at virtually the yearly low. The foundation of the Danish pharmaceutical group Novo Nordisk has completely sold its 5% stake in Evotec.

In the future, earnings will take precedence over growth for the northern German company. In this context, parts of the Company have already been divested. Most recently, for example, the sale of the Just - Evotec Biologics site in Toulouse to Sandoz was completed. Evotec has thus sold the production facility in Toulouse, but retains an indefinite license for the J.POD technology platform. In return, Evotec will receive USD 350 million in cash. In addition, milestone payments and license fees of more than USD 300 million are possible in the coming years. Evotec would also receive revenue shares if biosimilars are brought to market.

The stock market does not yet appear convinced by Evotec's new strategy. The management board must demonstrate that growth and profitability can be achieved simultaneously. Desert Gold is increasingly attracting investor interest. Signs are emerging that a viable path toward bringing the SMSZ project into production may have been identified. If this materializes, a meaningful revaluation of the share price would be likely. At Gerresheimer, the corrections to the annual financial statements now appear less severe than initially feared. Nevertheless, the loss of investor confidence should not be underestimated, making a rapid recovery unlikely.