Zefiro Methane: Potential Triple-Bagger
A massive environmental problem lies dormant across North America. Millions of decommissioned or abandoned oil and gas wells have never been properly plugged. Methane is escaping from many of these wells. Over a 20-year period, this greenhouse gas is significantly more harmful to the climate than CO₂. The operators responsible often no longer exist, which is why the state has to step in.
This is precisely where Zefiro Methane comes into play. Through its operating subsidiary Plants & Goodwin (P&G), the company plugs orphaned wells, conducts measurements and undertakes complete remediation projects. What sets it apart is that P&G has been active in this specialist market since 1970 and therefore possesses the experience, permits, personnel and equipment that cannot be built up overnight.
The figures show that what started as an interesting idea has now become a robust business. In the first nine months of fiscal year 2026, Zefiro increased its turnover by 36% to USD 33.2 million. Gross profit more than doubled to USD 10.7 million. Adjusted EBITDA stood at USD 4.25 million. All three quarters of the fiscal year to date have been profitable on an adjusted EBITDA basis.
In the third quarter alone, revenue climbed by 58% to around USD 11 million. Gross profit improved by as much as 153%. At the same time, total debt fell from USD 12.3 million to USD 8.2 million within a single quarter. For the full year, management expects turnover exceeding USD 40 million. Zefiro achieved this progress despite one-off costs of USD 652,000 arising from a dispute with the former management.
The equipment acquired from Viking Well Service in May is expected to provide a further boost. Zefiro paid USD 4.3 million for the equipment, thereby expanding its fleet and geographical reach. Management anticipates that the additional capacity will generate annual revenue of around USD 10 million. Zefiro has now been active in 13 US states.
A recent documentary about Zefiro Methane can be found here:
https://youtu.be/3MrjCUk5_QU
The flow of new orders is also strong. The Ohio Wood 12F project comprises 37 boreholes and is worth approximately USD 4.5 million. Added to this is a three-year framework agreement worth USD 19.6 million. Furthermore, P&G has secured three additional state-funded projects in Ohio; a total of around USD 2.4 million is expected to be generated in the first quarter of the new fiscal year for the plugging of 12 wells. The lack of competition is striking. In two of the three tenders, only one other bidder competed alongside P&G. The contracts are funded by a US infrastructure programme, IIJA, which allocates a total of USD 4.7 billion for the remediation of abandoned wells.
In addition to public sector clients, Zefiro is increasingly winning energy companies as customers. For a major natural gas producer, two further units were mobilised following a drilling string that had already been in use for the whole year. The combination of government remediation programs and private contracts broadens the company’s base and reduces its dependence on individual funding sources.
The CO₂ allowance business is not yet fully priced into the current market valuation. By plugging leaking wells, Zefiro prevents future methane emissions. Once verified, these savings can be converted into emission allowances and sold. This business is currently largely on hold, but could resume from the second half of the 2026/27 fiscal year following the introduction of a revised calculation method. As this incurs virtually no additional operating costs, above-average margins are on the cards.
The Augsburg-based financial services provider GBC Research continues to expect strong growth. For the 2025/26 financial year just ended, analysts forecast revenue of USD 45.18 million and EBITDA of USD 3.73 million. In the current financial year, revenue is expected to rise to USD 57.92 million. EBITDA is forecast to jump to USD 10.02 million. By 2027/28, revenue could reach USD 66.85 million and EBITDA USD 12.22 million.
GBC has included the share in its coverage, assigning a “Buy” rating and a price target of USD 1.50 or CAD 2.12. Based on the current share price of approximately USD 0.43 or CAD 0.60, this implies a potential return of over 250%. The fact that Zefiro’s share price could potentially triple sounds spectacular. However, if the company succeeds in translating its recent momentum into sustainable growth and stable profits, such price surges would not be entirely out of the question. The market would then likely revalue the share entirely. Even though the share has already risen by more than 100% over the past year, it could well triple in value again in the coming months. However, the share remains highly speculative. Nevertheless, the risk-reward profile is improving: turnover and gross profit are rising, EBITDA is positive, debt is falling, and the expanded fleet is laying the foundations for the next stage of growth. For risk-tolerant investors, the share remains an exciting addition to a portfolio.
Bayer: The Breakthrough is Taking Shape
At Bayer, the focus has recently been less on operational business and more on the major legal headache that is glyphosate. However, following a ruling by the US Supreme Court favourable to the group, the risk of further costs running into the billions has been significantly reduced. This means that the financial results, the pipeline and the group’s restructuring are finally back in the spotlight.
There was also a ray of hope on the operational front. In the second quarter, revenue, adjusted for currency and portfolio effects, rose by 2.2% to EUR 10.87 billion. Adjusted EBITDA improved by 1.9% to EUR 2.14 billion, well above the consensus estimate of EUR 1.94 billion. The agricultural business, in particular, benefited from the higher demand for seeds compatible with the weedkiller Dicamba. At the same time, Bayer lowered its forecast for net debt in 2026 from EUR 32 to 33 billion to EUR 29 to 30 billion.
The sale of a minority stake in the long-acting contraceptives business to Apollo for EUR 3 billion is proving helpful. CEO Bill Anderson is thereby creating financial leeway. Following the internal spin-off of the US glyphosate business, speculation about further sales or spin-offs is also growing.
Bayer is not yet a worry-free blue-chip stock. Nevertheless, analysts remain extremely optimistic: currently, 19 banks and research firms recommend “Buy”, while only 4 analysts have issued “Hold” ratings. There are currently no “Sell” recommendations. The average target price of just under EUR 58 offers potential gains of around 20%. At first glance, this return may seem modest, but if legal risks, debt and the complexity of the group all decrease simultaneously, a revaluation is possible. For long-term investors, Bayer shares remain an attractive addition to a portfolio.
Disney: The Profit Machine is Running Again
The US entertainment group Disney demonstrates just how valuable strong content can be when films, streaming, theme parks and merchandising are seamlessly integrated. In the third financial quarter, revenue rose 7% to USD 25.25 billion. Adjusted earnings per share increased by 28% to USD 2.06, exceeding expectations. The entertainment and theme park divisions performed strongly, whilst the sports business centred on ESPN continued to act as a drag due to higher costs and weaker advertising revenue.
The group is benefiting both from the success of new cinema films and from rising streaming revenues. Disney+ and Hulu have moved beyond their loss-making start-up phase and are increasingly becoming profit drivers. The theme parks, too, remain surprisingly resilient despite high admission prices.
Management is therefore not only sticking to its full-year outlook but has once again increased the planned share buyback volume to USD 9 billion. Revenue in the leisure and experiences division grew by 10%, whilst the group’s operating profit rose by 21%. Disney is thus once again more than just a turnaround bet. The share offers a combination of strong brands, rising streaming profits and substantial share buybacks. Analysts are also very confident about Disney, with 31 banks and research firms recommending the share as a “Buy”, whilst 2 rate it as “Hold”. Only 1 institution advises “Sell”. The average price target of just under USD 128.50 signals upside potential of around 20%. Price pullbacks on weak days remain an option for interested newcomers.
Conclusion: Three Stories, Three Risk Categories
Zefiro Methane offers the greatest growth and share price potential, but also carries the highest risk. The specialist is increasingly turning a multi-billion-dollar environmental problem into a profitable business. Bayer is the classic turnaround speculation: operations are improving, debt is falling, and the legal uncertainty is clearing. Disney, on the other hand, offers the highest quality of the trio. The entertainment group is demonstrating that streaming, theme parks and content are once again generating profits together. Those taking a speculative approach to the stock market should back Zefiro. Those hoping for a revaluation and wishing to invest more conservatively should opt for Bayer. Those who want to combine growth with strong brands should choose Disney.
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