Over 300% upside potential for cleantech stocks: Will dynaCERT finally outshine Nel, Plug Power, and Co.?

Revenue more than 10x in 2 years

Analysts at GBC Research recommend dynaCERT shares as a "Buy". Their target price for the Canadian cleantech company's stock is a strong EUR 0.48. The share, which is also actively traded on German stock exchanges, is currently trading at EUR 0.10. This means the experts expect a performance potential of 380%. Revenue is expected to climb even higher. GBC analysts expect dynaCERT to generate CAD 21 million in revenue next year. In 2024, this figure was only CAD 1.60 million. A significant profit is then expected to be achieved by 2026. Operating earnings (EBITDA) are forecast at CAD 4.79 million. Earnings per share are expected to reach CAD 0.01, resulting in a price-to-earnings (P/E) ratio of 15. This is anything but expensive for a fast-growing cleantech company. Peer group companies like Nel ASA and Plug Power are still far from reaching profitability.

With German management tapping into the billion-dollar market

DynaCERT's European offensive with its HydraGEN technology for reducing CO₂ emissions and improving fuel efficiency in diesel engines has come at the perfect time. The Company is already successful in North and South America in the oil and gas industry and in mining. Now, with German automotive experts Bernd Krüper as President and Kevin Unrath as COO, the Company aims to make a strong push into the European market.

And the new German government seems to be giving dynaCERT a powerful boost. The black-red coalition is allocating an additional EUR 100 billion to the Climate and Transformation Fund (KTF). The aim is to promote climate protection and energy efficiency in Germany in order to achieve climate neutrality by 2045. Specifically, CO₂ and other greenhouse gases are to be reduced. The CO₂ pricing system is, therefore, to be a central component of a mix of instruments. dynaCERT offers exactly the right technology to reduce emissions and generate CO₂ certificates.

Will HydraGEN technology soon be used in tanks?

The HydraGEN technology was developed by dynaCERT to reduce pollutant emissions and fuel consumption in commercial vehicles. The patented hydrogen-based system can be retrofitted into conventional diesel engines within just a few hours. The hydrogen required is produced by a small electrolyzer and fed into the combustion process via the engine compartment. As a result, efficiency increases, more energy is available, and fuel consumption is reduced. Accordingly, less CO₂ is produced, and fewer pollutants such as nitrogen oxides (NOx) are emitted.

The focus so far has been on users of heavy vehicles in the mining, oil and gas, transport, and power generation sectors. However, Bernd Krüper has already indicated in recent interviews that there are inquiries from other industries, such as shipping. Then, Germany's new key sector could also come into play: defense. The heavy diesel engines in Leopard 2 tanks, howitzers, and troop transporters are real polluters. Rheinmetall, KNDS, and others could significantly improve their environmental balance by working with dynaCERT. Although this is not currently an official topic, it will likely become one sooner or later, at least in Germany. A defense contract could likely send the dynaCERT stock through the roof, but this is purely speculative at this stage. However, Steyr Motors impressively demonstrated in March what an order from the armaments industry can trigger.

HydraGEN enables revenue from CO₂ certificates

With the HydraGEN technology, companies can not only improve costs and their ESG balance sheet but also generate a new source of income through the sale of CO₂ certificates. Tesla has already made a fortune with this. At the end of last year, the CO₂ certification company VERRA awarded the mandatory emissions label for the HydraGEN technology. dynaCERT's strategy is to share the revenue from certificate sales with its customers. Analysts at GBC Research expect the cleantech company to generate significant revenue from this new business segment starting next year. As the revenue is recurring, it should have a particularly strong impact on profits.

Positive news flow expected

The chances are good that dynaCERT shares will be driven by positive news flow in the coming months. The Company has been generating buzz in recent weeks by participating in leading trade fairs such as the Hanover Industry Fair, PDAC in Vancouver and, most recently, bauma in Munich. In an interview with Lyndsay Malchuk from Stockhouse Publishing at bauma, Bernd Krüper spoke positively about global demand. Click here for the full interview.

The interview with Kevin Unrath and Lyndsay Malchuk also offers fascinating insights into how dynaCERT aims to transform the industry sustainably. Click here for the full interview.

Conclusion: Multiplication possible

The analysts at GBC believe that dynaCERT shares could multiply in value. There are good reasons for this optimism. The technology is proven, reduces costs, and enables new revenue streams. The political environment beyond Germany's borders is also favorable. If initial sales successes are reported following the trade fairs, the stock could skyrocket and eclipse former hydrogen high-flyers Nel ASA and Plug Power.