SHARE PRICES are falling at Plug Power, Nel, and Hensoldt! BUY RECOMMENDATION for BMW partner European Lithium!

European Lithium: Use the correction to enter

At the beginning of January, we presented the stock of BMW partner European Lithium for the first time at a price of EUR 0.025. This was followed by a rally of almost 100%. The security is currently consolidating and is holding solidly above EUR 0.030. This represents another attractive entry opportunity, as the stock continues to appear far too cheap. The analysts at First Berlin also see it that way. To reach the experts' price target of EUR 0.14, the stock would have to multiply.

The reason for the analysts' optimism: European Lithium holds a 74% stake in NASDAQ-listed Critical Metals Corp (CRML). Even if the current corporate action by CRML has a somewhat dilutive effect, this investment alone is worth several hundred million US dollars. By contrast, European Lithium currently has a market capitalization of less than EUR 40 million.

CRML is the owner of the Wolfsberg lithium project in Austria. The plan is to start mining lithium there next year and then transport it to Saudi Arabia for processing and delivery to BMW. The Munich-based automaker has already paid a deposit of EUR 15 million for this. The Company has started a cooperation with Hatch Ltd. to build a refinery with an annual production capacity of up to 20,000 tons of battery-grade lithium hydroxide. In addition, CRML holds almost 50% of the Tanbreez project in Greenland and can increase its stake to 90%. Tanbreez is fully permitted and is expected to include the world's largest rare earth resource (JORC 2012 compliant). The results of the recent confirmation drilling are promising. One hole averaged 4,722.51 ppm rare earth oxides, including 27% heavy variants (HREO).

However, it is not only the CRML stake that speaks in favor of buying European Lithium shares. The Company recently acquired a lithium project in Ireland and owns additional projects near the Wolfsberg project. In addition, there are two lithium projects in Ukraine. These are not considered in the analyst research and are likely to gain in importance when the war ends. Here is the full study from First Berlin for download. The Company will also be presenting at the upcoming virtual investor conference IIF Register here.

Plug Power: It is getting worse and worse

While lithium – driven in part by the continued increase in sales of electric vehicles – is on the verge of a comeback in 2025, the major hydrogen specialists such as Nel, Plug Power and Co. are in the throes of a crisis. Even in good times like 2022 and 2023, the companies have not managed to establish profitable business models. Since 2024, hardly any major orders have been reported. Accordingly, Nel is cutting jobs and has even temporarily shut down production at its main plant. Nel spin-off Cavendish Hydrogen is also struggling to survive.

And what is Plug Power doing? The US company is suffering under the new president, Donald Trump. In the past four weeks alone, the share price has lost almost 40% of its value and is now trading at USD 1.70. And on top of this low, a capital increase must now be carried out. The agreement with an investment fund of Yorkville Advisors Global stipulates that Plug Power may sell up to 1 billion ordinary shares to it if necessary. The maximum amount of shares sold per day is limited to USD 10 million. The selling price will likely be well below the respective stock market price. Such a measure is only taken when no real capital increase can be placed. Given the deep red numbers, the issue proceeds are unlikely to last two years. In any case, a stable financial foundation looks different.

Hensoldt: mwb research sees long-term opportunities

Donald Trump is putting pressure on Russia to end the war between Russia and Ukraine. Concrete talks are to take place soon. Russia has signaled its willingness to do so, and other parties are not really being asked for their opinion. Accordingly, defense stocks such as Rheinmetall, Renk, and Hensoldt are reacting nervously.

At Hensoldt, the analysts at mwb research recommend buying. They have already factored in a potential end to the Ukraine conflict in their base scenario and see only a limited impact of the Ukraine situation on Hensoldt's revenues. Ukraine is estimated to account for only 5.4% of total revenue. The long-term growth potential results from orders from NATO countries. Hensoldt benefits from favorable industry trends, strong execution, and exceptional medium-term visibility. Therefore, the analysts see the fair value of the Hensoldt share at EUR 43. The share is currently trading at EUR 37.

Those looking to speculate on a potential multiplier should consider the stock of European Lithium. The Company has several irons in the fire that could cause the share price to skyrocket. In contrast, investors should steer clear of Nel and Plug Power for now. While hydrogen is promising, and there are also interesting stocks in the sector, the former investor favorites face major challenges. An end to the war in Ukraine would likely lead to a decline in the prices of armaments stocks potentially creating interesting entry opportunities. The shift toward NATO rearmament, however, is expected to remain.