SHARE PRICE DROP for Nel ASA and Evotec! SHARE PRICE OPPORTUNITY for HPQ Silicon!

HPQ Silicon: High-performance batteries impress again

There are good reasons to expect an upcoming revaluation of HPQ Silicon’s stock. Recently, the Canadian technology company has drawn particular attention for its new high-performance batteries. A significant technological leap could be on the horizon for applications in drones, defence, mobility, and high-end electronics.

As the company recently announced, a new semi-solid drone battery featuring GEN4 silicon anode material achieved an impressive energy density of 395 Wh/kg at the pack level. According to HPQ, this performance is significantly higher than that of traditional lithium-polymer and many modern lithium-ion drone batteries. The tested 8S battery pack delivered a capacity of 15,900 mAh and a total energy content of 457 Wh, weighing just 1.16 kg. Compared to publicly known benchmark systems, this corresponds to a performance increase of approximately 23% to 36%.

These are not the first convincing test results. Performance has already been demonstrated in 21700 round cells with over 7,000 mAh as well as in various drone configurations. Now comes the successful application in semi-solid systems—an area considered particularly promising for the next generation of high-performance and safer batteries. Through exclusive North American marketing under the HPQ ENDURA+ brand, the company already has access to industrial production capacity. This could position HPQ Silicon as an exciting player in the multi-billion-dollar market for silicon anodes and high-performance batteries.

Following the convincing test results, HPQ has already begun pre-commercial production in industry-standard formats. In addition, collaboration with potential partners is being intensified. Commercialization is therefore imminent.

Nel ASA: Share Price Slips

For several weeks, Nel ASA’s stock had been shining with rising prices. Within about four weeks, the price rose from EUR 0.19 to a new 52-week high of EUR 0.33. There were no apparent concrete reasons for the rally. Perhaps some knew more, and exciting news is on the horizon? Those who speculated on this were disappointed last week. There was indeed an announcement, but it was not spectacular, and so Nel’s shares subsequently plummeted from EUR 0.26.

The announcement is certainly interesting, but it does not justify a price surge of over 50%. The Norwegian company has announced the commercial launch of its new generation of pressure-driven alkaline electrolyzers. The platform is designed to simplify the production of green hydrogen while reducing costs, improving efficiency, and enabling scalability. After more than eight years of development and successful large-scale testing at the Herøya site in Norway, the system is now ready for market. According to Nel, the new solution enables total costs of less than USD 1,450 per kW for a 25-MW plant, resulting in significantly lower investment costs than many of today’s large-scale projects. The modular, standardized design with pre-assembled units is also intended to shorten project timelines and reduce complexity. Operating at 15 bar pressure also reduces the need for additional hydrogen compression.

According to the company, system costs could be reduced by 40%-60% compared to current market standards. The platform is based on patented production methods and, according to Nel, is optimized for large-scale industrial applications. Target markets include ammonia and methanol production, the decarbonization of the chemical and refining industries, and applications in sustainable aviation fuels and low-emission steel production. At the same time, according to Nel, hydrogen is also gaining importance for energy storage, grid stabilization, and decentralized energy supply. The industrialization of the new platform will proceed following an investment decision in 2025, with an initial planned production capacity of up to 1 GW per year at the Herøya site. The project is supported by grants from the EU Innovation Fund totalling up to EUR 135 million.

Evotec: Q1 Results Cause Disappointment

There was also a sense of disillusionment at Evotec last week. The quarterly figures led to a share price drop of around 10%.

Yet Evotec CEO Dr. Christian Wojczewski had provided a positive outlook: “Over the remainder of the year, we expect an improvement in Evotec’s business performance, supported by a recovery in the market environment and a stabilization of our R&D activities. At the same time, the implementation of Horizon is progressing—the transformation of our operating model aimed at creating sustainable growth and long-term value for Evotec. Since our last update, Horizon has moved into the concrete implementation phase, supported by targeted reinforcements within the leadership teams of the Commercial and Operations divisions. Progress in key partnerships with the Gates Foundation and Almirall underscores our diverse D&PD capabilities.”

Investors, however, focused on the figures for the first quarter of 2026. In this quarter, Evotec’s consolidated revenue fell from EUR 200 million to EUR 156.6 million. Adjusted consolidated EBITDA amounted to EUR 21.9 million. In the same period of the previous year, there was still a gain of EUR 3.1 million. The company attributes the decline to the absence of one-time licensing revenues from the Sandoz agreement in the first quarter of 2025, as well as to negative currency effects. The full-year forecast was confirmed. Evotec expects revenue of between EUR 700 million and EUR 780 million. Adjusted consolidated EBITDA is expected to be between EUR 0 and EUR 40 million.

Analysts’ price targets remain widely divergent even after the quarterly results. While Deutsche Bank considers the fair value of the Evotec share to be EUR 4.50, RBC believes the biotech stock could reach EUR 10.

Batteries will become increasingly important in the future, for drones, robots, and much more. HPQ Silicon’s high-performance batteries have performed well in tests. If commercialization is successful, the stock price could multiply. At Nel ASA, the euphoria is over for now. From a fundamental perspective, buying the stock is not a priority at this time. Evotec does not appear expensive, but the growth potential is currently lacking.

Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.