Return Potential at Vonovia, Siemens Energy and Desert Gold! Which Stock Belongs in Your Portfolio?

Vonovia: Headwinds

Property giant Vonovia is having to hold its own in a challenging market environment. The company recently published its results for the first half of 2026, which revealed remarkable operational resilience. The letting business continued to thrive, driving adjusted operating profit up by 2.4% to an impressive EUR 1.46 billion. Nevertheless, a massive slump in operating free cash flow dampened sentiment. This fell by more than 45.4% to EUR 607.5 million. This development is primarily attributable to higher financing costs. These pressures have pushed the share price to a three-year low of under EUR 19 in recent days. The share has since recovered somewhat and is now trading slightly above EUR 19. Despite the turbulence, the majority of analysts remain optimistic and continue to set the average price target at over EUR 30. However, investors should also keep an eye on yields on German government bonds. These have recently shot up to a new multi-year high. And as we know, rising interest rates tend to be toxic for property groups, as (re)financing becomes significantly more expensive. For the time being, given the market environment and the current discussions in Berlin about the possible nationalization of property, one might be advised to avoid shares such as those of Vonovia. Only when prices rise above EUR 22.50 will the technical picture on the charts ease and improve again.

Siemens Energy: Record Numbers, Yet Still Under Pressure

A similar picture of contrasts is evident at Siemens Energy. The company made fundamental progress in the past quarter of the 2026 financial year, though this was not consistently recognized by the stock market. The company recorded a strong order intake of EUR 17.9 billion. This marks a record high, pushing the total order book to an impressive EUR 162 billion! At the same time, revenue rose by an impressive 18.5% to EUR 11.4 billion. Particularly encouraging, however, was the return to profitability of the previously loss-making wind-power subsidiary, Gamesa. For the first time since 2022, this division returned to the black, thereby bolstering the group's full-year forecast.

Despite this excellent performance, however, the share price has recently come under further pressure. Following a substantial rise, many investors took the opportunity presented by the strong figures to take profits. Nevertheless, the company remains excellently positioned to benefit from the global energy transition.

From a technical analysis perspective, it is now important for the share price to get back on track to avoid breaking the long-term uptrend. To do so, it must climb back towards EUR 170. However, if this rise fails to materialize and the price falls below the support zone of EUR 135–140, the situation could become precarious, and the uptrend could be broken. A further plunge into the EUR 100–110 range would then be likely. While this scenario is hard to imagine given the high order book and recent strong results, nothing is impossible on the stock market.

Desert Gold: The Leap Into West Africa

While Vonovia and Siemens Energy grapple daily with interest rate policy and market sentiment in Europe, a potentially more explosive dynamic – and with it, opportunity – is unfolding on the African continent. Here, Desert Gold is tirelessly advancing its ambitious plans, step by step.

On the Verge of a Breakthrough?

Desert Gold stands on the threshold of what could be a significant re-rating. At the end of April 2026, the company announced the launch of an extensive drill program totalling 4,250 m at its SMSZ project in Mali. The program focuses on five targets, including Koussili and Gourbassi West North. Management aims to extend known mineralization zones and test new structural extensions at depth.

A major news highlight followed in early May. Desert Gold announced progress in the construction of the gravity processing plant at the Barani East site. Extensive site preparation has taken place, foundations have been excavated, and successful water drilling has been carried out. The production equipment was already en route by sea from China at that time, and commissioning is expected to take place soon. This transition to active production will undoubtedly mark a significant milestone.

Looking at the published preliminary economic assessment (PEA), the prospects become even more tangible. The assessment demonstrates a net present value after tax of a substantial USD 61 million and an internal rate of return of 57%, based on a gold price of USD 2,850 per ounce. At the current gold price, it should therefore be even more lucrative. Analysts at GBC have long recognized this potential and have set a target price of EUR 0.59 or CAD 0.95.

The share is currently trading at just around CAD 0.11. From a technical analysis perspective, enormous momentum is building here. The share is currently undergoing a consolidation phase, but a breakout could be imminent. The all-important hurdle lies at CAD 0.15. The welcome news that production has actually begun could be precisely the catalyst that dynamically drives this breakout. Once the resistance level of CAD 0.15 has been sustainably breached, the path towards the CAD 0.30 mark would effectively be clear. It is still a long way to the ambitious GBC price target, but ultimately, anything is possible in the stock market.

Vonovia is proving to be rock-solid in its operational letting business, but must bear the heavy burden of high interest rates, which continue to constrain cash flow. At the same time, Siemens Energy demonstrates that even record orders and an operational turnaround at Gamesa do not protect against short-term share price slumps. Desert Gold, on the other hand, presents itself in a very attractive light. The company is working toward commissioning its facility while simultaneously expanding its resource base. With a strong economic foundation, immense potential, and an attractive valuation, the company offers a speculative opportunity.