Analysts Recommend Buying! Nordex, 2G Energy and Zefiro Methane: Energy Stocks with Upside Potential

Zefiro Methane: Analyst Sets Price Target at CAD 1.00

A new “Buy” recommendation for Zefiro Methane. ATB Cormark Capital Markets is initiating coverage with an “Outperform” rating and a price target of CAD 1.00. Zefiro specialises in decommissioning and remediating abandoned and orphaned oil and gas wells in North America.

Analysts see this as a structurally growing market. In the US alone, there are approximately 140,000 identified abandoned wells, the remediation of which ATB estimates will cost about USD 21 billion. For the total number of wells that have not yet been properly plugged, the long-term capital requirement is estimated at more than USD 1 trillion. Zefiro benefits from both predictable contracts with private energy companies and extensive government programs for the remediation of abandoned well sites.

ATB highlights Zefiro’s many years of operational experience and strong position in the northeastern United States as a key competitive advantage. The business is strongly characterised by customer relationships, regional expertise, and technical know-how, particularly when it comes to older and complex wells. This provides the company with strong opportunities in public tenders and enables further market share gains. At the same time, ATB sees potential through operational improvements and consolidation in the regional service business.

For fiscal year 2026, the research firm expects revenue of USD 41.6 million and adjusted EBITDA of USD 1.4 million. By 2028, revenue is expected to rise to USD 62.0 million and EBITDA to USD 12.2 million. Analysts project earnings per share of USD 0.04 for 2028. Most recently, the stock traded between USD 0.45 and USD 0.50. The stock’s valuation, traded in Germany on Tradegate and other platforms, is considered favourable.

According to ATB, the business of CO₂ credits generated from the avoidance of methane emissions offers additional upside potential. Although this segment is still in its early stages, the quality of the credits generated by Zefiro is considered exceptionally high. US data centres and other large electricity consumers, in particular, could increasingly seek domestic emission credits in the future. ATB sees this as representing significant additional upside potential that is currently barely reflected in the share price.

Incidentally, the analysts at GBC Research are even more optimistic. They estimate Zefiro’s fair value at USD 1.50.

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Nordex: Tailwind in the US

With a self-proclaimed opponent of wind power as president, one would not immediately classify this country as a growth driver for Nordex. Yet that is precisely what the US currently is for the German company. While Donald Trump repeatedly lashes out verbally against the wind industry, the energy demand is simply too great to do without wind power. As a result, mwb research sees increasingly positive prospects for Nordex in the US. The expected upswing in the US wind market is taking shape and could prove stronger than previously assumed. In addition to catch-up effects following delays around the Inflation Reduction Act, rapidly rising demand for electricity driven by AI, data centres, and industrial expansion is adding another structural growth driver. For Nordex, the US market could thus become more important as growth in Europe, particularly in Germany, approaches a potential peak.

Despite political headwinds from Washington, mwb considers the economic case for wind power to be compelling. The US needs significant additional electricity generation capacity in the short term, while new gas and nuclear power plants have long lead times and grid expansion is also progressing slowly. At the same time, approximately 6.4 GW of new onshore wind capacity was installed in the first half of 2026 alone—more than in all of 2024. With levelized cost of electricity (LCOE) ranging from about USD 37 to 99 per MWh, onshore wind remains one of the cheapest new forms of generation, according to mwb, and is thus competitive with gas and, in particular, nuclear power. Wind power could offer additional advantages, particularly near large consumers such as data centres.

mwb remains cautious on Nordex stock, however, as much of the operational improvement has already been priced into the share price. The analysts confirm their “Buy” recommendation. The price target of EUR 44, however, is only about 10% above the current price level. The analysts intend to wait for further signs that the US economic recovery is sustainable and stronger than expected before adopting a significantly more positive assessment.

2G Energy: Analysts Say “Ready for Take-off”

First Berlin sees 2G Energy poised for a significantly stronger growth phase following a solid 2025 fiscal year. Revenue rose 6% to EUR 398 million in 2025, while the EBIT margin of 6.6% was at the lower end of the forecast range. However, the company confirmed its ambitious guidance for 2026 and 2027. In 2026, revenue is expected to rise to around EUR 490 million, with an EBIT margin of 9.5% to 10.5%. For 2027, 2G forecasts revenue of EUR 570 to 620 million and an EBIT margin above 11%. First Berlin considers these targets well-supported, given the record order intake of more than EUR 400 million in the first half of 2026, and describes the situation as “ready for take-off”.

Demand is driven primarily by data centres, industrial projects, and the structurally rising demand for electricity, coupled with sluggish grid expansion. In the US in particular, 2G is benefiting because gas turbines and large engines are largely sold out, and modular solutions consisting of several 1- to 2.5-MW units offer an alternative. A major order from the US worth more than EUR 100 million, along with additional orders from the data centre sector, underscores this trend. First Berlin expects further momentum from the German biogas market, the large-scale heat pump business, and the planned tenders for reserve power plants totaling 11 GW. Over the long term, 2G could also benefit from Ukraine’s energy infrastructure reconstruction.

For 2026, First Berlin anticipates revenue of EUR 490 million, EBIT of EUR 48.3 million, an EBIT margin of 9.9%, and earnings per share of EUR 1.82. In 2027, revenue is expected to rise to EUR 620 million, with EBIT of EUR 71.3 million and earnings per share of EUR 2.70. For 2028, revenue is forecast at EUR 744 million, EBIT at EUR 93 million, and earnings per share at EUR 3.59. The price target remains at EUR 73, and the recommendation is still “Add”. Currently, 2G Energy’s stock trades around EUR 55.

Zefiro Methane operates in a niche with enormous potential and is well on its way to becoming the market leader. Analysts expect significant increases in revenue and earnings in the coming years. Nordex shares have corrected sharply in recent months. The outlook is positive, but the stock remains expensive. If US revenue materialises as expected, 2G Energy shares are likely to have considerable upside potential.

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