Opportunities from change and key turning points – Salzgitter, Westwing, Zefiro Methane

Westwing Surges: Share Buyback – Will the Breakout Now Succeed?

Westwing Group shares already gained significant momentum last week. Last Friday, October 9, the stock rose around 7% at one point and traded as high as EUR 13.90. The shares thus broke through a price zone where several recovery attempts had recently failed. A new share buyback programme is providing a tailwind. The question for investors now is whether this can lead to a lasting recovery.

Westwing is a furniture and home accessories supplier founded in 2011 and headquartered in Munich. The company sells its own products under the Westwing Collection brand as well as selected designer brands, primarily through its online platform. Shops and interior design advice complement the offering. With a market capitalisation of around EUR 270 million, Westwing is one of the smaller German stocks.

The current price momentum comes from the buyback announcement published on Thursday evening. With the supervisory board's approval, management intends to buy back up to 640,000 of the company's own shares. This corresponds to around 3.26% of the share capital. A maximum of EUR 10 million is available for this, excluding incidental acquisition costs. The programme begins on October 12 and may run through March 31, 2027. The purchases are to be made on the stock exchange. Westwing is thus announcing additional demand for its own shares. This can support the share price, but does not guarantee any further rise. No binding commitment has been made to cancel the acquired shares. They can therefore be used for any legally permissible purpose. The buyback supplements an EUR 8 million programme already completed at the end of July. At the end of June, Westwing had a net cash position of EUR 68 million.

Operationally, business performance is mixed. In the second quarter, revenue rose by 14% to EUR 113 million. The number of active customers rose 13%. Expansion into new countries and sales promotions supported growth. At the same time, adjusted EBITDA fell from EUR 6.2 million to EUR 5.4 million. Higher transport costs and one-off charges associated with new order and warehouse management systems weighed on profitability. For 2026, the management board continues to expect revenue of EUR 470 to 495 million and adjusted EBITDA of EUR 36 to 48 million. In August, management indicated that revenue would be in the upper half of the forecast range. The next quarterly figures on November 5 must show whether growth is also increasingly strengthening earnings power.

Technically, the position is improving. The shares are above the 20-day moving average at around EUR 12.25 and the 50-day moving average at EUR 12.60. The repeatedly contested zone between EUR 12.5 and EUR 13.0 has also been breached, with the latest price at EUR 13.40. This should ideally serve as support during pullbacks. The next test comes between EUR 14.00 and EUR 14.50. The round-number price level, the 100-day moving average at about EUR 14.10 and the 200-day moving average at around EUR 14.05 converge there. Only a sustained breakout above this entire zone would significantly brighten the technical picture. By contrast, a fall back below EUR 12.50 would call the latest recovery attempt into question.

Zefiro Methane: Operational Turnaround in the US Decarbonisation Market

Vancouver-based Zefiro Methane is increasingly benefiting from government remediation programmes and stricter US methane-reduction regulations. Beyond the cyclical commodity markets, government funding budgets for orphaned wells and the growing need for land for transmission networks and data centres are driving demand for environmental services. The core business focuses on professional well decommissioning together with methane/outgassing monitoring, permanently eliminating substantial quantities of greenhouse gases classified as harmful to the climate. The May acquisition of Viking Well Service's equipment expanded its operational reach to 15 US states. With this enlarged deployment fleet, the service provider is already handling several major projects in parallel, including the recently completed second remediation phase in Cuyahoga Valley National Park.

The business upturn under CEO Catherine Flax is now clearly reflected in the 2025/26 financial year results. Total revenue climbed 31.1%, mainly organically, to USD 42.49 million, compared with USD 32.41 million in the previous reporting period. At the same time, positive earnings before interest, taxes, depreciation and amortisation (EBITDA) of USD 0.60 million, up from an operating loss of USD 4.75 million in the previous year, mark a successful turnaround. On an adjusted basis, operating earnings even amounted to USD 3.8 million. Higher utilisation rates for the company's own field teams also lifted the gross margin to 29.2%, while strict cost discipline in administration further increased profitability.

Multi-year framework agreements and successful government tenders in key regions such as Ohio and Pennsylvania substantially secure visibility into future cash flows. The group was the sole bidder in several contract awards. This underscores the considerable operational barriers to market entry in the environmentally focused sector, which has demanding regulatory requirements. Strategically, management is systematically expanding the portfolio into adjacent business areas with high technical complexity. This is demonstrated by a USD 750,000 pilot contract for carbon capture and storage in the state of Indiana and specialised emergency operations at hydrogen sulphide wells. The certification and sale of emissions credits is intended to be added as a supplementary source of revenue in the medium term.

In view of the full project pipeline and progressing economies of scale, analysts at the independent research firm GBC continue to rate the share „Buy“, with a price target of USD 1.50. At a current share price of around USD 0.41, the market capitalisation of approximately USD 44.25 million does not reflect expected earnings growth. For the 2026/27 financial year, the study projects revenue to jump to USD 57.92 million and EBITDA to USD 10.02 million. The valuation model is based on discounted cash flow with a weighted cost of capital of 10.74%. Provided Zefiro continues its operational expansion at the projected pace, the stock offers investors a very lucrative risk-reward profile in an ecological and economic growth market.

Salzgitter: UBS Sees 42% Upside – Can the Recovery Hold?

Salzgitter AG shares are making a comeback after a sharp sell-off. On Friday, October 9, the stock briefly gained around 13% and traded at just under EUR 50.00. However, from September 7 to yesterday's trading session, the share had already lost 21% and last traded at EUR 48.76. A new Buy recommendation is now rekindling hopes of stabilisation.

Salzgitter is a steel and technology group based in Lower Saxony with a market capitalisation of around EUR 3.0 billion. The company produces flat steel, steel beams and pipes, among other products. It also trades steel and supplies machinery and equipment for filling and packaging beverages. The stake in copper group Aurubis provides a further above-average contribution to earnings.

UBS recently provided the decisive impetus for the share price. The Swiss banking major upgraded Salzgitter from „Neutral“ to „Buy“ and raised the price target from EUR 56.00 to EUR 71.00. Compared with a share price of EUR 48.76, this represents calculated upside of around 45%. Analyst Andrew Jones expects the group to benefit more than other European steel producers from rising EU steel prices. Salzgitter is therefore one of his preferred stocks in the sector.

Salzgitter also expects a positive boost from European trade protection measures. These are intended to limit the pressure from steel imports. Higher selling prices could improve profitability, provided demand and cost trends are supportive. At the same time, the business remains dependent on the economic cycle. High energy prices and investments in the transformation of steel production remain burdens.

The half-year figures already show progress. With external revenue of EUR 4.6 billion, EBITDA VX reached EUR 459.0 million. This adjusted metric excludes valuation effects from the exchangeable bond on Aurubis shares. The Aurubis stake contributed EUR 193.0 million to earnings. The P28 improvement programme delivered additional savings of EUR 97 million. For 2026, Salzgitter expects around EUR 10.0 billion in revenue and EUR 725 to 825 million in EBITDA VX. The nine-month figures will follow on November 12.

From a technical analysis perspective, the share price jump is initially a counter-movement within a weakened chart pattern. The share recently fell below all moving averages and, on October 1, dropped below the 200-day moving average. Despite the strong share price recovery, it continues to trade below it. A sustained trend reversal has therefore not yet been confirmed. The zone between EUR 50.00 and EUR 51.00 will now be crucial. This is where the psychologically important round level, the 20-day moving average at approximately EUR 50.50 and the 200-day moving average at around EUR 50.70 converge. If this zone is reclaimed, the 50- and 100-day moving averages at approximately EUR 53.00 and EUR 53.70, respectively, could then come into focus.

Below EUR 47.00, however, the situation would deteriorate again. The support zone around EUR 43.00 to EUR 45.00 would then become relevant again. This was also the location of last week's intraday low and roughly the turning area from late June. The share price jump is a sign of hope, but the Salzgitter share has yet to prove its sustainability.

Conclusion

The Westwing Group is receiving a boost from a new share buyback programme of up to EUR 10 million and, from a technical analysis perspective, is on the verge of breaking out above the important EUR 14 resistance zone.

Zefiro Methane is turning profitable in the US decarbonisation market, with revenue jumping to just under USD 42.5 million, and is impressing analysts with substantial share price upside potential.

The Salzgitter share is beginning a price recovery after a UBS Buy recommendation with a price target of EUR 71.00, but it must now sustainably clear the technical hurdle at the 200-day moving average.