Sell Nordex? Verbio Faces Analyst Skepticism - Dividend Gem RE Royalties at a Strategic Turning Point

RE Royalties: Revaluation Overdue

Strong cash flows from renewable energy production and an attractive dividend—yet RE Royalties remains a hidden gem. The stock offers not only upside potential but also a dividend yield of around 10%.

The term "royalties" still evokes associations with mining for many investors. But RE Royalties is changing that. The business model: Project developers receive capital without giving up equity. In return, RE Royalties receives a share of future revenues. The company exclusively finances proven technologies such as solar, wind, hydroelectric power, and energy storage. Thanks to numerous projects in the US, RE Royalties is benefiting from the AI boom. The company's project pipeline, valued at CAD 20 million, now has a potential volume of up to CAD 200 million. This is because the rapidly growing number of data centers often faces outdated grids and limited power supply. As a result, decentralized solutions such as wind, solar, and storage projects are gaining significant importance.

Management is responding to the discrepancy between market capitalization and corporate performance. The strategic direction is currently under intensive review. To optimize shareholder value, all options are on the table: partnerships, new financing structures, and even the sale of the entire company.

Against this backdrop, things are likely to get exciting on May 20, 2026, when COO Peter Leighton will be presenting live at the International Investment Forum (IIF). Registration for the virtual investor conference is free for investors.

Nordex: Order intake declines, sell the stock?

While there are many factors pointing to rising prices for RE Royalties, the price rally at Nordex is stalling. At least, that is the view of mwb research. The analysts downgraded the wind turbine manufacturer's stock to "Sell" following the release of Q1 order intake figures.

Following a record year, order intake was weaker in the first three months of the current year. The company reported a 14% decline in new orders to 1.9 GW. Analysts expect this trend to continue throughout the year.

Furthermore, the mwb experts are more cautious than their colleagues in their outlook on the Q1 figures. They expect Nordex to report only a revenue increase of up to 2% on April 27. The consensus expects a 9% increase compared to the same quarter last year. Regarding EBITDA, mwb expects Nordex to report between EUR 100 and EUR 120 million. The consensus here is EUR 113 million. Overall, analysts consider the company's full-year forecast, revenue of EUR 8.2 to 9.0 billion and an EBITDA margin of 8% to 11%, to be realistic.

The reason for the "Sell" recommendation is the high valuation. From the experts' perspective, the roughly 50% price rally since the start of the year has shifted the risk-return profile too sharply. With a P/E ratio of 26 for the current year, the stock is too expensive given the geopolitical uncertainty. Analysts see the fair value at EUR 40. The stock is currently trading just above EUR 46.

Verbio: What is going on with the analysts?

Verbio has been a standout performer in recent weeks. The stock of this biofuel provider has gained over 78% since the start of 2026 alone. Since October 2025, the stock has more than tripled in value.

Here, too, analysts expect the price rally to come to an end. Jefferies has raised its price target for Verbio from EUR 21 to EUR 25. An upward revision of the forecast for the current year is certainly possible. However, Verbio shares are trading just under EUR 40. Therefore, analysts recommend a "Hold." Why they couldn't bring themselves to issue a "Sell" recommendation given the large gap between the price target and the current price remains their secret.

At Deutsche Bank, too, the recommendation and price target do not quite align. They have raised their price target from EUR 29.60 to EUR 40.50. Given the current price, one might expect a "Hold" recommendation, but that is not the case. The analysts recommend a "Buy".

A revaluation is overdue for RE Royalties. Regardless of the outcome of the review, the stock should react positively. Adding a few shares to your portfolio could be worthwhile, especially since the dividend provides a floor for the price. At Nordex, investors are accustomed to high returns but will likely have to brace for a somewhat quieter year. Verbio is likely to continue benefiting from high gasoline prices, but is also already ambitiously valued.