Trump Threatens to Withdraw from NATO! Hensoldt, SAP, Avrupa Minerals: Stocks for a Strong Europe!

Avrupa Minerals: A Stock for the European Raw Materials Boom

With Avrupa Minerals, investors can benefit from the urgently needed raw materials boom in Europe. The Canadian raw materials specialists are building a diversified portfolio, thereby spreading risk. Avrupa invests early in geologically promising but still poorly defined projects. The company secures rights to various properties, begins exploration, thereby increasing the value of the projects, and brings financially strong partners on board for the capital-intensive phase.

The focus is on copper and zinc. But the portfolio also includes precious metals. Geographically, Avrupa favors politically stable European countries with a mining-friendly environment, such as Finland and Portugal. There, the company seeks out historic mining regions with known mineralization and existing infrastructure. From these, the most promising properties are selected. Through mapping, geochemistry, geophysics, and initial drilling tests, the projects are then advanced.

In Portugal, the company is developing the Alvalade project in the famous Iberian Pyrite Belt. The Sesmarias copper-zinc deposit is promising. The publication of an initial technical report in accordance with NI 43-101 is intended to make the project more tangible. The company then plans to further advance exploration with a partner. In Finland, Avrupa is focused on the central Pyhäsalmi district. The region is geologically attractive and has existing processing and logistics infrastructure, which can lower the economic barrier to development. There, the company has already secured a package of seven satellite targets near the former Pyhäsalmi mine and sees potential for approximately 10 million tons of copper-zinc ore.

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Hensoldt: New Momentum for the Stock?

If the US were to actually turn its back on NATO, armaments and defense would become key investment areas. In this sector, Europe may have recognized the signs of change most clearly. However, investors are increasingly losing patience with defense companies. The shares of Rheinmetall, RENK, Hensoldt, and others have already performed very strongly in recent years. Yet revenue and profit growth have so far failed to keep pace with this momentum.

So it is no surprise that, for example, Hensoldt shares have been trading sideways since the start of the US and Israeli attack on Iran. Those who bet on rising prices in recent weeks have been disappointed so far.

But the bulls seem to be gaining momentum. Yesterday, the electronics and sensor specialist's stock managed to gain over 4%. Was it due to the update from Kepler Cheuvreux? The analysts no longer view Hensoldt stock as a "Sell" candidate but have upgraded it to "Hold." The price target was raised from EUR 65 to the current level of EUR 81.

Previously, analysts at Jefferies had already expressed a positive view on Hensoldt. They consider the forecasts too conservative and expect revenue growth to reach EUR 2.75 billion this year, with an adjusted EBITDA margin of 18.5% to 19%. Consequently, the experts upgraded Hensoldt stock from "Hold" to "Buy." They estimate the fair value of the stock at EUR 90.

SAP: Is the Sell-off Over?

When it comes to European independence in software and AI, SAP is frequently mentioned. However, this sense of optimism is not reflected in the German software company's stock price - quite the contrary. So far this year, the Walldorf-based group's stock has lost over 17% of its value. At around EUR 167, it is trading well below the 52-week high of over EUR 273 reached in February 2025. The reason for the price decline was that the DAX-listed company is considered one of the AI underperformers. However, there is a growing consensus that the sell-off was excessive.

Just yesterday, two analyst firms recommended buying SAP shares. For Barclays, SAP is the favorite in the European software sector. The DAX-listed company is said to be solidly positioned. Consequently, the "Overweight" rating has been confirmed. Analysts see the fair value of SAP shares at EUR 240, which is over 40% above the current level. At Jefferies, the price target for the Walldorf-based company's stock is as high as EUR 290. From the analysts' perspective, the decline in the stock price does not align with operational performance. Therefore, they recommend buying SAP shares. UBS has recently been somewhat more cautious in its comments on SAP. There, the price target stands at EUR 205. However, even this is sufficient for a "Buy" recommendation.

SAP shares may have been oversold. Nevertheless, sentiment toward the software industry remains negative. In contrast, commodities have likely only just begun their supercycle. In this context, Avrupa Minerals is an exciting stock to benefit from Europe's catch-up rally. Hensoldt remains ambitiously valued. Revenue and earnings must grow more strongly to provide the stock with sustainable momentum.