While Friedrich Merz fails, BUYING OPPORTUNITIES arise for these stocks: Deutz, BYD, and Power Metallic Mines

Power Metallic Mines: Buy opportunity!

Power Metallic Mines is undoubtedly one of the most exciting Canadian resource stocks. Last year, spectacular drill results elevated the Nisk project to a world-class multi-metal project and caused the stock – then still under the name Power Nickel – to multiply in value. Experts already estimate the net present value of the raw materials at around CAD 1.15 billion – the market capitalization is currently below CAD 230 million. And by no means has the entire area been explored. The latest drilling results are once again positive, and the share price consolidation in April now presents an exciting buying opportunity.

Power Metallic Mines recently reported on five drill holes from its winter drilling campaign. The downward extension of the Lion Zone and a large EM anomaly were investigated. All drill holes encountered polymetallic mineralization.

High-grade gold, silver, and copper mineralization was discovered in particular. It is located in an area not previously considered mineralized and appears to be a potential precursor to more advanced polymetallic mineralization.

CEO Terry Lynch commented: "With each set of samples, we are expanding the Lion Zone. We are also still learning. We are defining some of the zone's boundaries as we advance at depth. The high-grade hits here are exciting and we think they provide strong indications of more extensive mineralized areas in the immediate vicinity."

Investors can look forward to further positive news flow. Results from four drill holes from the winter campaign are still pending. In addition, the Company is fully funded through 2026. It can therefore only be a matter of time before the share price marches back towards CAD 2.

Deutz: Soon to reach an all-time high?

Deutz has impressively demonstrated how quickly consolidation can come to an end. Deutz shares have recovered spectacularly from their slump at the beginning of April. After falling from around EUR 7.50 to below EUR 6 in less than two weeks, the share price is now back above EUR 7. Will it soon break through the EUR 8 mark and reach a new all-time high? Analysts are bullish in any case.

Quirin recently confirmed its "Buy" recommendation for Deutz shares. Analysts see the fair value at EUR 9. Deutz got off to a good start in the new fiscal year. The high order intake in Q1 of EUR 546.1 million (+30%) indicates that growth should gain momentum. Revenue in the current fiscal year is expected to be driven by the consolidation and integration of recent acquisitions, such as Blue Star Power Systems in the US, and the sales activities of RRPS. Analysts forecast that Deutz will grow by around 25% in fiscal 2025, generating revenue of around EUR 2.3 billion. The adjusted EBIT margin of 5.2% is diluted by the cyclical weakness in the engine business, but will be supported by the increasing share of the service business. Despite a 29% share of revenue in the US, analysts do not expect Deutz to be significantly affected by potential tariffs. The revenue share in the high-margin military and security industry, currently at 2%, should double quickly. Overall, the current valuation of Deutz shares is still characterized by low multiples and significant discounts to its international peer group.

Incidentally, Hauck Aufhäuser even believes that Deutz shares could reach a price of EUR 10.30.

BYD: New strategy for Europe

While rival Tesla is struggling, BYD is continuing its growth course. In the first four months of the year, the Chinese automaker sold a total of 1,380,893 vehicles, representing an increase of 47% over the same period last year. In April, sales climbed 21% to 380,089 vehicles. For the first time, more pure electric vehicles (195,740 units) were sold than plug-in hybrids (176,875).

Growth abroad was impressive in April, doubling to 79,087 vehicles. However, hybrids are particularly popular in Brazil, Mexico, and Southeast Asia. The ambitious Chinese continue to struggle in Europe. For example, only 50 vehicles were sold in Sweden in April. This was 49% less than in the previous year. The Company is also lagging behind its own targets in Germany. In April 2025, 1,566 new BYDs were registered in this country, giving it a market share of 0.6%. Now, low-cost models are expected to bring about a turnaround.

BYD plans to bring its best-selling model in China, the Seagull, to Europe. In April alone, 55,000 units of the electric small vehicle were sold worldwide. In China, the basic version costs less than EUR 8,000. The Seagull is already available in South America and Asia under the name Dolphin Mini. In Europe, it is set to hit the market at the end of May as the Dolphin Surf, priced at under EUR 20,000.

Raw materials will remain in demand. Power Metallic Mines has a world-class project, and the value seems to increase with every drill hole. Currently, there appears to be a very interesting buying opportunity. A lot of growth seems to be priced in for Deutz, but the momentum could hold as the long-term outlook is positive. BYD appears to be continuing its triumphant advance in electromobility, even if growth in Europe is slower than expected.