Stocks in RALLY MODE: Deutz, Nel ASA with momentum! MiMedia taps into huge revenue potential with Walmart!

MiMedia: Huge revenue potential, favorable valuation

MiMedia, the cloud insider tip for 2025, currently offers an exciting entry opportunity. The Company provides a cloud platform for media content based on artificial intelligence (AI).

Last week, a spectacular partnership was announced, but the share has not yet reacted. After the stock more than doubled between December 2024 and February 2025, the current sideways movement is also quite understandable. However, the latest announcement should soon lead to a further price increase. The Company has gained Walmart Latin America as a new partner. The largest international subsidiary of US retail giant Walmart is one of the largest retail companies in Latin America, generating over USD 48 billion in revenue each year. It operates over 4,000 stores in Mexico and Central America alone. Through Bait, the Company is also a major smartphone and telecommunications provider in the region. In just five years, Bait has grown to become the third-largest telecommunications service provider in Mexico, with 18.3 million subscribers at the end of 2024. It is now challenging for the number two spot in the country.

This opens up huge potential for MiMedia. The agreement stipulates that the MiMedia app will be pre-integrated into the millions of new smartphones sold by Bait in Mexico. And it gets even better. The MiMedia mobile application is to be installed as an over-the-air update on the up to 18.3 million Android smartphones already in the hands of Bait customers. In addition, a marketing campaign – online and in stores – is to be launched to generate enthusiasm for the Bait Cloud platform among Bait customers throughout the Latin American region, and MiMedia will be part of this cloud platform. Walmart's ecosystem consists of some of the most-used apps on the continent, such as "Cashi" for digital payments and "Salud" for healthcare. MiMedia content is expected to further increase user engagement and revenues.

MiMedia CEO Chris Giordano comments: "This signed agreement with Walmart Latin America provides MiMedia with a reliable, fast-growing pipeline of smartphones that will integrate our platform as a native media gallery. These devices will provide both MiMedia and Walmart with a solid pipeline of high-margin, recurring revenue."

Prior to this deal, MiMedia had already announced that it had started selling smartphones in the US with the MiMedia app pre-installed. Based on current device contracts, this alone has a gross revenue potential of over USD 125 million. MiMedia's market capitalization in the low double-digit million CAD range seems far too low.

Nel: A breakthrough for the Company and the share price?

Unlike MiMedia, the Nel share is still far from a healthy chart picture. At least the latest news gives reason to hope that the hydrogen pioneer will not end up insolvent.

In addition to Samsung's entry as a new major shareholder, Nel has also reported a major order. The US subsidiary Hydrasun is to deliver a 2.5 MW PEM container plant to Scotland. The client is the Aberdeen Hydrogen Hub project. The scalable green hydrogen production, storage and distribution facility, powered by renewable energy, is being built as part of a joint venture between BP and Aberdeen City Council.

Nel CEO Håkon Volldal comments: "We are pleased Hydrasun has chosen Nel for this significant project. Hydrasun is a professional supplier that excels in quality, and we look forward to supporting them with fast-to-market and reliable electrolysers."

Previously, Samsung's entry as part of a strategic partnership had awakened the Nel stock. The South Koreans are acquiring a 9.1% stake in Nel for NOK 353 million. Thanks to the two pieces of news, the stock has gained around 25% in March. At EUR 0.25, however, it is still trading well below its old highs.

Deutz: Cheap or expensive?

The German government's planned billion-euro investments in armaments, infrastructure, and climate protection have electrified the stock market. Deutz is among the second-tier winners. Since the beginning of March, it has gained around 39%. Meanwhile, the engine manufacturer is valued at around EUR 1 billion.

The recently published figures for 2024 show that the current valuation includes a great deal of future potential. The Company reported a 12% increase in revenue to EUR 1.81 billion. Adjusted EBIT of EUR 77 million was slightly above analyst estimates, as was the order backlog of EUR 1.83 billion. Thanks to an economic recovery in the second half of the year, Deutz aims to increase revenue to between EUR 2.1 billion and EUR 2.3 billion in 2025. At the same time, EBIT is expected to climb to between EUR 105 million and EUR 138 million. In addition, Deutz is working on an efficiency program that is expected to save EUR 200 million, with the first EUR 50 million coming by the end of 2026. By 2030, the Company aims to roughly double its revenue and generate around EUR 4.0 billion annually.

Following the figures, DZ Bank analysts have reduced their earnings estimate for the current year from EUR 0.67 to EUR 0.63 per share. As Deutz is seen as a beneficiary of the special fund, they have significantly raised their estimates for 2026 and 2027 to EUR 0.90 and EUR 1.08, respectively. As a result, Deutz is considered favorably valued compared to its peer group and is a "Buy". The analysts' price target for the Deutz share was raised from EUR 5.80 to EUR 7.80. The colleagues at Hauck Aufhäuser are much more optimistic. They see an opportunity for Deutz not only in infrastructure investments but also in the reconstruction of Ukraine. Their price target is EUR 11.

MiMedia still seems to have significant upside potential. The valuation is attractive, and the already reported collaborations should boost operational business in the current year. Therefore, the stock should soon break out of its sideways movement. At Deutz, a lot of future potential is already priced in, but the current momentum can certainly carry the stock further. At Nel, there is hope again, but nothing more.