March 25th, 2024 | 07:00 CET
Siemens Energy, Carbon Done Right Developments, Rheinmetall - Light at the end of the tunnel
Due to the global arms race and the shift in focus, defense stocks such as Rheinmetall and Hensoldt are currently all the rage on the stock market. Unfortunately, this trend will likely continue over the next few years as orders increase. In contrast, another fundamental topic, climate change, is currently receiving little attention, at least in the markets. Renewable energy companies have been correcting for months but are currently increasingly working on bottoming out. In the long term, this presents anti-cyclical entry opportunities.
time to read: 3 minutes | Author: Stefan Feulner
ISIN: SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , CARBON DONE RIGHT DEVELOPMENTS INC | CA14109M1023 , RHEINMETALL AG | DE0007030009
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Rheinmetall - Sound barrier broken
The share price went through the magic EUR 500 mark like butter, which once again means a new all-time high for the integrated technology group from Düsseldorf. This puts Rheinmetall shares at the top of the best-performing stocks in Germany's leading index, the DAX, with a 75% increase in price since the beginning of the year. The increasing geopolitical tensions promise further bulging order books for Germany's most important defense company.
This is also the view of the analysts at DZ Bank, who have raised the fair value from EUR 376 to EUR 524 with a "Buy" rating. The US investment bank JP Morgan is even more optimistic about Rheinmetall's future and has raised its target price from EUR 455 to EUR 600. The increasing fundamental trend towards upgrading and the excellent network in Central and Eastern Europe were cited as arguments.
The Company, led by CEO Armin Papperger, recently made headlines by selling shares worth nearly EUR 5 million and securing another billion-dollar contract from the German armed forces. According to reports, the German government is buying 123 wheeled armored vehicles, bringing the volume of the order to around EUR 2.7 billion including services. The new wheeled tanks will replace the Wiesel mini-tank. The so-called "infantry heavy weapon carriers" will be delivered from 2025.
Carbon Done Right Developments - Highly innovative in the billion-dollar market
Until recently, the Company, valued at CAD 5.21 million, was listed under Klimat X. With the name change, the team around CEO James Tansey also announced a far-reaching transformation into a technology company that represents a significant advance in terms of precision, traceability and accountability of the process for generating emission certificates using state-of-the-art AI technologies.
The market for carbon credits is expected to grow eightfold by the end of the decade according to the Boston Consulting Group. Carbon Done Right is one of the few pure players to meet the high demand for "carbon credits". This is done by investing in research, restoration and maintenance of land and marine ecosystems together with partners. These ecosystems are selected to protect and enhance the sequestration of greenhouse gases or to convert them from a degraded state to fully functional ecosystems. Carbon Done Right is currently active with projects in Sierra Leone, Ghana, Suriname and Mexico, with Sierra Leone emerging as the flagship. Here, the Canadians have planted 1,400 hectares of forest and 14 hectares of mangroves and have signed a previously announced agreement with BP Carbon Trading to acquire at least 5,000 hectares, which will generate up to 1.9 million tons of carbon credits over 30 years.
Another important piece of the puzzle for the future is the planned merger of the London Carbon Exchange LCE, which has developed a blockchain-based platform for emissions trading. Emissions certificates are "tokenized", which creates a high level of transparency and security. As part of this, Carbon Done Right is aiming for a dual listing of its shares on London's AIM.
The extreme transformation into a highly innovative technology company in the exponential growth market of emissions trading has yet to be recognized on the stock exchange so far. The Carbon Done Right share has lost around 50% of its value since the beginning of the year.
Siemens Energy - Chart picture brightens up
The technical chart of Siemens Energy shares continues to brighten after reaching a six-month high. After a disastrous stock market year in 2023, the Munich-based company is one of the best performers in the DAX with a gain of around 47% behind Rheinmetall and Daimler Truck. The increase in the share price, which currently stands at EUR 16.26 for the electrical and energy technology manufacturer, could be achieved by breaking through the EUR 17.14 mark. After a drastic profit warning, a price gap was torn here, which would only be closed at the EUR 23.38 level.
The latest jump in the share price was triggered by a report from the news service Bloomberg, indicating that Siemens Energy could soon resume delivering wind turbines. In the previous year, significant quality problems led to a sharp fall in the share price and billions of euros in losses.
In its research, Bloomberg spoke to several potential customers to determine whether they expect onshore turbines to be delivered soon. The energy group Repsol from Spain and BayWa are expecting offers from the Munich-based company in the near future.
When asked to provide a specific delivery date, Siemens Energy refrained from giving any information but emphasized to Bloomberg that it is working hard to resume deliveries as soon as possible.
Rheinmetall received another billion-dollar order from the German government and broke through the EUR 500 mark for the first time. Siemens Energy is expected to start delivering wind turbines again soon. Carbon Done Right Developments is transforming into an AI-powered technology company and offers excellent growth opportunities in a rapidly growing market.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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