Volkswagen, Silver North Resources, Albemarle – The comeback of value stocks

Volkswagen AG – Billions against the crisis

Volkswagen is countering operational weakness in China and the US with a new investment program worth over EUR 160 billion, which will run through 2030. CEO Oliver Blume is clearly shifting the focus to Europe after price pressure, tariffs, and geopolitical risks in foreign markets have had a noticeable impact on profitability. Porsche and Audi, in particular, are under pressure, forcing the group to strategically realign itself.

Although the investment volume is slightly lower than in previous years, it shows a clear prioritization towards product quality, technology, and infrastructure. In the short term, this means cost discipline, structural cuts, and a more cautious model policy, especially at Porsche, where electric plans are being scaled back. According to Blume, growth from China is not to be expected for the time being, but long-term localization is possible.

However, the decisive factor for investors is the recognizable "potential for self-help." This is precisely what Bank of America is banking on, reaffirming its "Buy" recommendation for VW shares despite headwinds. After a transitional year in 2025 with billions in costs, analysts expect a turnaround in earnings from 2026 onwards and a jump in operating profit from EUR 9.6 billion to EUR 17.4 billion. The drivers are expected to be a recovery at Audi, efficiency gains in the core brand, and rising contributions from Porsche again from 2028 onwards.

The VW share price recovered significantly after hitting lows of around EUR 88 at the end of October. A sustained break above the annual high of EUR 114.20 would generate a new buy signal with follow-up potential into the EUR 130 zone.

Silver North Resources – Impressive results

The price of silver has been booming in the current stock market year 2025, and there appears to be no end in sight from a fiscal and geopolitical perspective, as well as due to rising demand from industry. Instead, smaller stocks such as Silver North Resources, valued at just under CAD 25 million, are likely to act as a lever on the base price.

The Canadian company is focusing on three core projects in the Yukon, foremost among them the 8,579-hectare Haldane project, which borders directly on Hecla Mining's Keno Hill mine. At the same time, management holds around 16% of the shares, which clearly aligns its interests with those of the shareholders.

Geologically, Haldane is presenting an increasingly compelling picture. Two high-grade mineralizations were discovered as early as 2024, including a 1.83-meter section with 1,088 g/t silver and accompanying metals such as gold, lead, and zinc. Recent drilling confirmed the level. The HLD25-31 drill hole was described by the Company as its best hole to date and shows consistent, high-grade silver grades with higher gold proportions than before.

In parallel, Silver North is developing the Tim Silver Project through a joint venture with Coeur Mining. Further drilling successes at the Veronica Property with 2,860 g/t silver and the Tim Property with up to 52.8 g/t silver underscore the potential of the portfolio. The Company also plans to acquire additional properties in secure jurisdictions.

The Silver North story is driven by two factors: the combination of high-grade discoveries and proximity to established producers in the Yukon.

Albemarle – Major beneficiary of the lithium boom

The global lithium market is facing a structural excess of demand. Driven by electromobility and energy storage, demand will grow exponentially by the end of the decade. Forecasts predict a 14-fold increase in battery consumption by 2030, with the EU even anticipating a 60-fold increase in demand by 2050. Price weakness due to economic conditions and oversupply has therefore not changed the long-term trend. Industry is heading for a deficit that will require new capacity, recycling, and technological alternatives.

Albemarle is in the driver's seat here. The stock has been one of the strongest performers in the sector for months and has more than doubled since its interim low in April. At the end of last week, the share price received a further boost from a revaluation by UBS. The Swiss upgraded Albemarle from "Neutral" to "Buy" and raised the price target from USD 107 to USD 185.

Analysts expect a deficit in the lithium market from 2026 onwards because demand is growing faster than Western production. UBS considers USD 18 to USD 19 per kilogram realistic in the medium term. The market is currently pricing in around USD 15. At the same time, UBS's EBITDA estimates for 2026 and 2027 are 50% and 125% above the consensus, respectively.

Albemarle also delivered on the operational front. In the third quarter of 2025, revenue and earnings were reported well above expectations. Instead of the forecast minus USD 0.90 per share, adjusted earnings were only minus USD 0.19, while revenue also exceeded estimates at USD 1.31 billion.

After a year of AI, a sector rotation could be on the horizon in 2026. VW is pumping billions into product quality, technology, and infrastructure to keep up. Silver North Resources posted strong results. Albemarle is considered the top dog in Western lithium production.