Watch out! Gerresheimer slumps 30%, NEO Battery Materials as a game changer, Schott Pharma surprises positively

NEO Battery Materials – Game Changer

The Canadians are increasingly changing the landscape of the battery industry. Technologically, NEO Battery Materials focuses on silicon-enhanced anodes based on a proprietary approach. This enables higher energy density, shorter charging times, and significant cost advantages. The result is shaping up to be nothing short of an industrial revolution: the transition from the classic lithium-ion cell to performance-optimized silicon architecture. According to expert estimates, the market for silicon-enhanced lithium-ion batteries will grow enormously from currently less than USD 5 billion to around USD 30 billion by 2032.

The company recently reported another technological breakthrough. The newly developed NBM drone cells exhibit superior performance characteristics: 50% greater capacity and 40% higher energy density than currently commercially available drone batteries - all at the same size.

The Canadian company's growth model is clever and promises great potential. It is based on the established foundry model from the semiconductor industry, in which design and production are separated and handled by different parties. Applied to the battery sector, this means that OEMs from a wide range of industries, such as automotive, drones, robotics, and defense, could consequently place orders with NEO. There are several reasons for this. OEMs avoid high investment costs and also receive specialized batteries from Western manufacturers – without any supply chain risk. The Chinese mass market is therefore no longer a viable alternative.

The list of orders and partnerships for the Canadians is growing steadily. Significant examples include strategic collaborations with Fortune 500 OEMs and defense-related institutions such as the Korea Institute for Defense Industry (KOIDI). KOIDI is a valuable potential door opener for further business from the defense industry. NEO recently announced a partnership with zinc giant Korea Zinc and technology company Taesung. Together, they are researching the next generation of batteries and aim to present market-ready drone and micromobility batteries by the end of the year.

The Canadian company's growth prospects are excellent. With a company valuation of just under CAD 100 million, the stock has significant upside potential.

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Gerresheimer – A shambles

Gerresheimer has postponed the publication of its annual and consolidated financial statements, originally scheduled for February 26. As a result, the specialty packaging manufacturer's stock plummeted by over 30%. A year ago, the shares were still trading at around EUR 80. At that time, takeover speculation and talks with financial investors had given the stock a considerable boost.

However, events in recent months have caused enormous uncertainty among investors and, as can be seen in the current slide in the share price, have resulted in a loss of confidence. At its core, this concerns investigations initiated by the German Financial Supervisory Authority (BaFin) last year. The subject was an audit of problematic entries in the 2024 consolidated financial statements. Ultimately, Gerresheimer corrected revenues from these so-called bill-and-hold agreements in the amount of around EUR 28 million. In itself, this is a negligible amount given sales of around EUR 2 billion. What remains, however, is investor uncertainty.

There are obviously other issues to be addressed, otherwise the presentation of the annual report would not have been postponed. Regardless of the figures, management has a long way to go to regain the trust of investors. Looking at the figures objectively, the company's current valuation of EUR 650 million is favorable compared to revenue of over EUR 2 billion. For the past fiscal year 2025, analysts expect revenue of EUR 2.3 billion and EBITDA of EUR 421 million. For the current year, experts are forecasting growth to EUR 2.4 billion and EUR 463 million, respectively.

Schott Pharma – Strong first quarter

In December of last year, Schott Pharma prepared its shareholders for modest growth. Now, the group has surprised everyone with a strong first quarter, which has been rewarded with gains in the share price. With revenue rising by nearly 4% to EUR 240 million and EBITDA up 11% to EUR 65 million, the group started the financial year better than analysts had expected. Schott reported stronger demand across the entire portfolio, with the share of high-margin products continuing to increase.

In addition, management confirmed its previously stated outlook for the full year ending September 30, 2026. The company expects currency-adjusted revenue growth of 2% to 5% and an EBITDA margin of around 27%. Schott Pharma manufactures specialized solutions for the safe storage and administration of injectable drugs, such as syringes, ampoules, vials, and cartridges. The average price target for the share is currently EUR 19.60, which corresponds to an upside of around 25%.

NEO Battery Materials impresses with its technological expertise and superior approach. Enormous growth potential is opening up. The share price will gradually be revalued. Gerresheimer, on the other hand, is struggling again and has a long way to go to regain lost investor confidence. Things are going well for Schott Pharma.