The profit lies in the purchase! The market is currently overlooking the potential of Desert Gold, Adidas, and Lanxess. Why act now?

Desert Gold – Analysts identify massive undervaluation

Precious metals remain a first-class investment for preserving purchasing power and a safe haven in times of geopolitical unrest. Against this backdrop, gold and silver are experiencing a boom. However, the current gold price of USD 4,000 per troy ounce is merely a stopover in a structural and sustainable upward trend. While blue chips have risen, the trend has largely bypassed second- and third-tier stocks. This phenomenon is quite characteristic of exploration companies. During the course of long-term uptrends, exploration companies often develop with a time lag, like a leveraged play on the underlying commodity. We expect Desert Gold to follow this pattern soon.

The core of the Canadian company's activities is the exploration and development of its flagship project, SMSZ in western Mali, which covers 440 km². The preliminary economic assessment (PEA) for the Barani and Gourbassi sub-deposits revealed convincing key figures and confirmed an economically viable open-pit project with low investment costs. At an assumed gold price of USD 3,366 per ounce, the project's net present value (NPV) is USD 54 million, with a payback period of only 2.5 years. Given the current gold price of around USD 4,000 and the fact that only around 10% of SMSZ's gold resources are included in the valuation, significant upside appears likely. In addition, the Company's market capitalization is just CAD 18 million.

Further upside potential for Desert Gold is supported by its latest acquisition. The Company has signed an option agreement with the Ivorian company Flower Holdings SARLU to secure a 90% stake in the 297 km² Tiegba Gold Project in Côte d'Ivoire. This is a significant strategic step, as Desert Gold is now positioning itself as a regionally diversified gold explorer and developer in West Africa. The project lies within the high-grade Tehini Gold Belt, which remains largely unexplored – representing a major opportunity. GBC analysts have issued a "Buy" recommendation with a price target of EUR 0.20 (CAD 0.32), implying potential fivefold upside for the stock!

Adidas – Nervous market participants, but optimistic analysts

Adidas recently published its third-quarter figures. After achieving record sales, the Company raised its forecast for the current fiscal year. Moreover, US tariffs did not negatively impact business as much as initially feared. The Company now expects the majority of the EUR 120 million burden to be incurred in the final quarter. In addition, next year will feature the World Cup in the US, Canada, and Mexico, as well as the Winter Olympics.

Despite these positive factors, the share price has recently declined. The argument currently shaping the market is uncertainty about developments in the US, triggered by recent management statements. However, analysts remain bullish and consider the current decline in the share price to be exaggerated. Deutsche Bank experts confirmed their "Buy" recommendation and price target of EUR 280 – implying an upside of nearly 80%!

Lanxess – Cash-rich in 2026?

The German specialty chemicals group continues to suffer from weak demand. This is nothing new, but experts now expect the slump to persist for even longer. As a result, most analysts have given the stock an "Underperform" or "Hold" rating. The share is currently trading at around EUR 20, giving the Company a market capitalization of around EUR 1.7 billion.

Regardless of day-to-day business, a potential windfall next spring could brighten the mood among Lanxess shareholders. The Company aims to fully divest its stake in the Envalior joint venture. Lanxess has the right to offer its share package to its joint venture partner, an Advent investment company, at a base purchase price of around EUR 1.2 billion. That is equivalent to 70% of its current market capitalization! The market appears to be ignoring this, presenting an interesting opportunity for forward-looking investors.

Stock pickers should remain patient, as high returns are on the horizon. GBC analysts rate Desert Gold shares as a potential five-bagger. The gold projects being pursued demonstrate significant potential that the market is currently overlooking. The same applies to Lanxess, where the extraordinary earnings expected next year are not yet reflected in the share price. Adidas, meanwhile, appears to have been punished too harshly by the market, leaving the stock at an attractive entry level.