Which Share to Buy Now? Nordex with Strong Order Intake, Verbio Impresses at the CMD and Zefiro Methane Could Multiply in Value!

Zefiro: Record Revenue, Growth Prospects, Buy Recommendation

Record revenue, significant growth prospects and, in analysts' view, substantial share price potential. The current situation at Zefiro Methane can be summed up that simply.

The Canadian company specialises in decommissioning orphaned oil and gas wells, which frequently leak climate-damaging methane. In the US alone, millions of these wells exist. The estimated remediation requirement amounts to hundreds of billions of US dollars. The market is highly fragmented, and Zefiro aims to take a leading role in its consolidation.

In the 2025/26 financial year, revenue rose 31% to a record USD 42.5 million. At the same time, adjusted EBITDA jumped from minus USD 4 million to plus USD 3.8 million. In the latest interview with Lyndsay Malchuk of the IIF, CEO Catherine Flax explained that a more consistent focus on revenue-generating activities and cost reductions drove the earnings improvement. Long-term government contracts provide planning certainty for the coming years. These include a USD 19.6 million contract in Ohio and another USD 11.5 million contract running through 2029. As government projects can be completed with greater timing flexibility, they can offset seasonal fluctuations in business with corporate customers.

Flax sees significant growth potential as American AI infrastructure expands. New data centres, power plants and logistics properties are often built on sites containing abandoned oil and gas wells. These must be plugged before construction begins for safety reasons. According to Flax, there are already sites for planned data centres with hundreds of such wells. For context: Zefiro currently plugs around 250 orphaned wells annually. Individual large-scale projects could therefore generate significant additional revenue. The company has recently made several smaller acquisitions, expanding its fleet of drilling rigs. At full utilisation of existing capacity, Flax believes annual revenue of nearly USD 70 million is possible. New business areas, such as preparing wells for underground CO₂ storage, further expand the addressable market.

Flax sees Zefiro as having a competitive advantage over many smaller specialist providers. The company has its own skilled workforce, extensive equipment and an in-house training programme. This also enables it to undertake technically demanding remediation work and handle larger contracts. In the coming years, Flax expects additional growth from expansion into more US states and, in the longer term, Canada. In her view, methane measurement and emissions allowance trading also offer attractive prospects. Although these activities have contributed little to revenue so far, Flax says they have particularly high margins and could contribute more to earnings in the future.

Link to the interview:

https://youtu.be/O-afR4etwe8?si=EZQTlTswpWjmN9gg

GBC Research also likes the combination of increasing drilling rig utilisation, long-term government contracts, and expansion into additional US regions. For the current 2026/27 financial year, the experts forecast revenue growth to USD 57.92 million and EBITDA of USD 10.02 million. On the bottom line, they expect a profit of USD 4.21 million. Earnings per share are expected to be USD 0.04 in the current financial year and rise to USD 0.05 in the coming 2027/28 financial year. At a current share price of USD 0.42, this brings the P/E ratio below 10. GBC Research therefore recommends buying Zefiro Methane shares with a price target of USD 1.50.

Verbio: Analysts Consider Sell-Off Excessive

Although petrol prices are reaching one record after another, Verbio shares have performed poorly in recent months. Since the beginning of June, the share price has slipped from over EUR 40 to just above EUR 25. NuWays sees this as a buying opportunity. The analysts reaffirmed their assessment following Verbio's Capital Markets Day. They continue to consider a share price of EUR 41 fair. Management outlined normalised EBITDA potential of around EUR 300 million based on the existing production facilities. Under particularly favourable market conditions, EBITDA could reach up to EUR 500 million. The mid-range scenario requires higher plant utilisation and stable biofuel margins. Additional opportunities arise from US tax incentive programmes. According to management, the so-called 45Z programme alone could theoretically generate annual tax credits of between USD 13 million and USD 130 million. These have not yet been factored into the presented EBITDA potential.

NuWays expects further growth impetus from the move into renewable chemicals. Verbio has already delivered more than 130 product samples for various industrial applications. In individual areas, technical approval rates are at 90%. At the same time, the completion of an intensive investment phase should strengthen free cash flow. Capital expenditure is expected to fall to around EUR 55 million in the current financial year. In 2022/23, it was still EUR 203 million. NuWays expects additional liquidity from the sale of accumulated greenhouse gas quotas. The analysts have raised their EBITDA forecasts for 2027/28 and 2028/29 by EUR 10 million each. Nevertheless, the price target of EUR 41 remains unchanged.

For the coming financial years, analysts expect revenue and profits to rise significantly. In the current financial year 2026/27, revenue is expected to grow from EUR 1.87 billion to EUR 1.90 billion. EBITDA is expected to rise from EUR 193.9 million to EUR 230.7 million. For the financial year 2027/28, the experts already expect revenue of EUR 2.07 billion and EBITDA of EUR 320.7 million. For 2028/29, NuWays forecasts revenue to rise to EUR 2.15 billion and EBITDA to EUR 333.9 million. Verbio's earnings per share are expected to improve from EUR 1.04 in the past financial year to EUR 2.79 by 2028/29. This would represent an increase in earnings per share of around 168% within three years.

Nordex: Is the Rally Starting Now?

While Zefiro's shares are waiting for a breakthrough on the stock market and Verbio is in a downtrend, Nordex made a statement yesterday. Reported order intake exceeded expectations. In an initial reaction, Berenberg reaffirmed its Buy recommendation with a price target of EUR 58. In early trading on Monday, the shares gained more than 4%, but could not maintain this level over the course of the day.

In the third quarter of 2026, the wind turbine manufacturer received orders totalling 2,810 MW, representing an increase of 29.5% compared with the same period last year. In the first nine months, order intake totalled 7,733 MW, up 16.1% from the previous year. Between July and September alone, customers ordered 427 wind turbines for projects in ten countries. According to the company, the pricing environment remained stable. The average selling price in the third quarter was EUR 0.90 million per MW, compared with EUR 0.93 million in the previous year. Over the nine-month period, it rose slightly from EUR 0.92 million to EUR 0.93 million per MW.

Growth drivers were primarily Turkey, Germany and the US. With orders exceeding 900 MW, Turkey was the most important individual market in the third quarter. In the US, Nordex has booked more than 1.3 GW in orders since the beginning of the year. CEO José Luis Blanco sees this as evidence of the business becoming increasingly international. He expects the share of international orders to rise further as additional projects from the existing pipeline convert into firm orders. At the same time, demand in Europe, and particularly in Germany, remains high.

Conclusion

All three stocks carry analyst Buy ratings. Zefiro is still in the early stages of its growth story and could become a market leader in a multibillion-dollar market over the coming years. GBC Research sees more than 200% upside potential. Verbio’s prospects are particularly compelling in the US, although the stock remains in a clear downtrend. For Nordex, the unexpectedly strong order intake could trigger a rally. However, the fact that the shares failed to react more positively yesterday is not an encouraging sign.