SHARE PRICE RALLY 2025 or cash in? Siemens Energy, thyssenkrupp nucera, Myriad Uranium

Myriad Uranium: Will the price rally continue in 2025?

Uranium was one of the positive surprises of the year. 2024 showed that there is no way around nuclear energy for the foreseeable future. The energy demand is driven, among other things, by artificial intelligence data centres and the simultaneous pressure to achieve CO2 neutrality. In this environment, the Myriad Uranium share has more than doubled in the current year. Investors seem to be betting on further price increases, as a few days ago, an oversubscribed capital increase was implemented. Myriad holds a 75% majority in the Copper Mountain uranium project in the US state of Wyoming and could increase this to 100%. In addition, the Company has a 50% interest in the Millen Mountain project in Canada. The analysts at Singular Research recommended the Myriad share as a "Buy" before the capital increase, with a target price of USD 1.35. The security is currently trading at USD 0.27. In October, the share also traded above USD 0.40. After the successful capital increase, this mark can be targeted again.

The fresh funds will be used to conduct further geophysical surveys and start another drilling program. This should continue the positive news flow in the coming year. The drilling program in the current year exceeded expectations. The historical resources were verified, and the potential for deeper uranium mineralization was demonstrated. The Company announced in November that the results of over 1,000 ppm, with a peak content of 8,060 ppm in 34 drill holes, were excellent. The grade will likely be revised upwards by around 13% in the detailed analysis. Read the full announcement here).

Siemens Energy: Cashing in?

In 2024, the Siemens Energy share has performed even better than Myriad Uranium. But are the prospects for 2025 similarly attractive? At least for the coming months, a consolidation would not be surprising. On the one hand, the turnaround seems to be more than sufficiently priced in. After all, the Company is now valued at more than EUR 40 billion.

In addition, the major shareholder wants to cash in. In an interview with Bloomberg, Siemens CFO Ralf Thomas spoke of wanting to reduce its stake in Siemens Energy from the current 17% to 11%. Selling the block of shares at the current price level would net Siemens over EUR 2 billion. The transaction is expected to be completed by September 2025. The cash inflow will be used to help pay for part of the purchase price of Altair. Siemens announced in October that it wanted to take over the US software group for USD 10 billion. A few days ago, the Federal Cartel Office gave the green light for the acquisition.

The planned share sale could initially weigh on the price of Siemens Energy shares. Analysts also see only limited upside potential. The vast majority of analysts recommend buying the DAX company's securities, but the upside targets are modest. For example, Deutsche Bank recently confirmed its "Buy" recommendation and raised its upside target slightly. However, given the current price of just over EUR 50, the analysts' fair value of EUR 58 is modest. JPMorgan even rates the Siemens Energy share only as "Neutral". The price target is EUR 44, more than 10% below the current listing.

thyssenkrupp nucera: A 100% candidate?

While Myriad Uranium and Siemens Energy have performed positively in the current year, 2024 has been a year to forget for shareholders of thyssenkrupp nucera. The stock of the German hydrogen hopeful has lost more than 40% of its value over the course of the year. Although the Company seems to be in a better position than Plug Power and Nel ASA, this is no reason to buy for the time being. On the other hand, hydrogen is considered important in the energy mix of the future.

Despite the challenging environment for hydrogen, the Company is optimistic about the future. Dr Werner Ponikwar, CEO of thyssenkrupp nucera, said on the occasion of the 2023/24 annual figures: "The long-term growth prospects of thyssenkrupp nucera remain intact. We have a strong financial base and are excellently positioned for growth in the green hydrogen market with our technology, products and employees. With our high investments in line with market developments in the future of thyssenkrupp nucera, we are consistently driving the scaling of our business and strengthening our competitiveness and profitability in the long term and sustainably. We can easily cope with the current phase of temporarily somewhat slower growth with our stable cash flow from the chlor-alkali business and our asset-light business model." Although thyssenkrupp nucera also has an EBIT loss, it is in a much more solid position than Nel or Plug Power. In addition, the Company showed last year that it can also make a profit. The Norwegians and Americans still have to prove this to investors.

Analysts are divided. Last Friday was a case in point. Berenberg, for example, again advised holding thyssenkrupp nucera shares, noting that the Company's outlook to 2025 is solid. However, more major orders are needed to be able to recommend the share as a buy. The analysts see the fair value of the share at EUR 12, while it is currently trading just above EUR 10. By contrast, Bernstein Research is bullish on the thyssenkrupp nucera share. In the green hydrogen sector, they believe the share is the right choice. The analysts' target price is 20% higher, translating to a good 100% above the current level. As a result, they recommend the thyssenkrupp nucera share as "Outperform".

There is much to suggest that Myriad Uranium's share price will rise in 2025. Energy demand continues to rise worldwide, and outside of Germany, there is agreement that, in addition to renewable energies, nuclear energy is also needed to meet this demand. With the project in the US, it is active precisely where Microsoft, Amazon and Co. are investing in nuclear energy. Siemens Energy is still well positioned, but after the rally, the share price performance should normalize in 2025. thyssenkrupp nucera may be best positioned in the hydrogen sector, but an investment is not currently compelling given the challenging industry environment.