November 13th, 2024 | 07:00 CET
Over 100% PRICE GAIN? Nel ASA, SAP, and Myriad Uranium share in analyst review
The new Trump administration is likely to give nuclear energy - and consequently uranium - a further boost. At the same time, Internet giants such as Google and Amazon have already chosen nuclear energy as the solution to their energy needs. Myriad Uranium has a project in the US, and analysts see a 175% upside potential. Experts are also convinced by SAP. They see the software company as the top pick in Europe. However, the stock has already seen significant gains. Nel, on the other hand, has completely different problems. The hydrogen market, despite political support, is simply not gaining momentum. Analysts even consider a new multi-year low possible and recommend selling. Is an acquisition the only answer?
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
NEL ASA NK-_20 | NO0010081235 , SAP SE O.N. | DE0007164600 , MYRIAD URANIUM CORP | CA62857Y1097
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Myriad Uranium: Exciting project in the US and 175% upside potential
Uranium is celebrating a strong comeback this year. The mix of energy hunger from data centers for artificial intelligence – Google, Amazon & Co. are investing heavily – and the pressure to achieve CO2-neutral energy is making nuclear power the first choice in many countries. At the same time, uranium is scarce, and imports from Russia are prohibited in many countries. It is, therefore, not surprising that the price has multiplied this year, despite the recent correction. And in the future, the uranium industry is likely to be among the winners of the new Trump administration in the US.
Myriad Uranium is an investment opportunity in this exciting uranium environment. The explorer holds a 75% majority stake in the Copper Mountain uranium project in the US state of Wyoming and could increase this to 100%. It also has a 50% stake in the Millen Mountain project in Canada.
The analysts of Singular Research recommend buying shares of Myriad with a target price of USD 1.35. Currently, the security is trading at USD 0.49. Thus, the experts see a price potential of 175%. They rate the Copper Mountain project of Myriad as very promising. It is not only located in a key region, but also has extensive historical data. The 2,000 drill holes indicate a uranium resource of 15 to 30 million pounds (U308) and thus have great potential. The fact that renowned mining investor Stephen Dattels has invested USD 1 million in the latest financing round, making him an anchor investor, is a positive sign. According to Singular Research, Myriad Uranium is currently trading at a discount compared to its peer group.
SAP: Analysts' darling with upside potential
SAP is not only a heavyweight in the DAX but also one of the top performers this year. Despite the 60% rally in the current year, analysts see further upside potential. According to Marketscreener.com, 19 out of 26 experts recommend SAP shares as a "Buy". Most recently, Jefferies raised the target price for the software company from EUR 230 to EUR 255, reaffirming its "Buy" rating. Analysts view the recent quarterly results positively. The increase in the annual forecast shows that, compared to other software companies, the Walldorf-based company is doing better in the current rather challenging environment. SAP is the momentum story of the sector in Europe.
With a target price of EUR 260, JPMorgan is currently the super bull. The strong performance in the past quarter came as a surprise. SAP's growth, which has been accelerating for years, is unique in Europe, and the stock continues to be attractively valued from a fundamental perspective.
Nel: New multi-year low?
Unsurprisingly, analyst opinions on Nel look quite different. According to Marketscreener.com, 17 analysts cover the former hydrogen high-flyer. Of these, only 2 experts still recommend the stock as a "Buy". Jefferies is also among the bears of Nel. Most recently, the price target was slashed from NOK 5.50 to NOK 3. In addition, the rating was downgraded from "Hold" to "Underperform". The Company continues to face major challenges. Despite political support for hydrogen, corporate willingness to invest is not picking up. Although there are signs of a revival, it is still far from reaching critical mass.
There are also no buy signals from the technical analysis. Nel shares are currently trading at NOK 3.50, a multi-year low. After hopes for improvement briefly pushed the stock to NOK 8.50 over the summer, the next sell-off followed. The market capitalization is around NOK 6 billion. Today, it seems utopian that the stock will ever reach its all-time high of over NOK 30 again. By contrast, the takeover by the Indian partner seems likely – the question is, at what price?
Myriad Uranium is an exciting investment to benefit from the comeback of uranium and nuclear power. With the project in the US, the Company is active in what is arguably the most exciting nuclear market in the world. Analysts see significant upside potential, and the new anchor investor provides security. SAP remains a core investment. However, a lot of future growth seems to be priced into the share price. Currently, virtually nothing is speaking in favour of an investment in Nel.
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