Almonty in Focus, Growth Opportunities at PVA TePla and Redcare Pharmacy: Three Stocks to Watch

Almonty Gains Operational Momentum

Almonty Industries has cleared the next hurdle toward a successful and sustainable operational business. On September 21, the tungsten producer announced that it had received the final operating permit for its processing and crushing plant in Sangdong. Ore has been flowing through the plant since June. Now, the concentrate may also be sold commercially and exported. On September 23, Almonty celebrated its first tungsten production at the site since 1993. The long-running construction project in South Korea can thus now become a significant source of revenue and cash flow.

Demand for this sought-after raw material is meeting a tight supply. Tungsten is used in carbide tools, defense equipment and electronics. China’s share of global mine production is estimated at around 80%. Export controls are exacerbating the supply situation. According to experts, the price of the intermediate product ammonium paratungstate (APT) has risen by approximately 775% since early 2025.

Western industrial customers are seeking reliable suppliers. Almonty can offer them additional volumes. Sangdong is initially designed to process 640,000 metric tons of ore per year. The second expansion phase is expected to increase throughput to up to 1.2 million metric tons; experts anticipate this step will take place in 2027. Sales for the first phase are largely secured. A contract with Global Tungsten & Powders, part of the Plansee Group, runs for 21 years from the first delivery and covers more than 90% of the planned Phase I production. Price floors provide protection, while rising market prices offer additional earnings potential.

Los Santos in Spain is providing fresh momentum. On September 17, Almonty entered into a multi-year offtake agreement with Sandvik subsidiary Wolfram Bergbau und Hütten. The agreement provides for the supply of at least approximately 1,720 metric tons of contained tungsten trioxide from existing processing residues. The agreement includes a purchase or payment obligation, index-linked prices with a floor and a conditional one-time payment of USD 3 million for the purchase rights. This secures the sales channel even before processing resumes, and the customer participates in the financing.

The partnership with Rwanda, announced on September 14, is expected to open up additional supply volumes. Almonty is to hold 75% of the joint venture, with the government holding 25%. The joint venture initially plans to purchase, process, and export material from existing mine operators. Exploration of its own concession is also planned. According to CEO Lewis Black, this will make existing raw materials available more quickly. It remains to be seen what contribution this will make to profits.

High tungsten prices are already reflected in the figures. In the second quarter, revenue jumped 498% to CAD 43 million, and adjusted EBITDA reached CAD 17.6 million, compared to a loss of CAD 4.8 million in the prior year. However, the net income of CAD 181.8 million includes CAD 173.1 million in non-cash valuation gains from financial instruments. In addition, the company had CAD 1.23 billion in cash on hand at the end of June, largely supported by a senior notes offering worth USD 800 million. This gives Almonty leeway to expand in Sangdong, Portugal and other projects.

Analysts at Stifel expect Almonty to make a significant growth leap. For 2026, the experts estimate revenue at CAD 345.8 million and adjusted EBITDA at CAD 247.1 million. In 2027, these figures are expected to rise to CAD 926.2 million and CAD 792.7 million, respectively. In an initial report dated September 24, Stifel recommends the stock a “Buy” with a price target of USD 25, corresponding to an upside potential of around 90% and aligning with the average consensus estimate among analysts. A total of 10 analysts currently recommend buying the stock, while only 1 expert advises “Hold”. No analysts currently recommend “Sell”.

As production grows, Almonty stands to benefit significantly from the raw material shortage. The approval and new offtake agreements also lend more substance to the investment story. The growth outlook remains good, but the stock is generally best suited to risk-tolerant investors. If the core business gains sustainable momentum with the ramp-up at Sangdong, Almonty’s stock still has significant upside potential for further price gains.

PVA TePla with Full Order Books

At PVA TePla, confidence is growing faster than revenue. The specialist in materials and measurement technology secured orders totaling EUR 186.7 million in the first half of the year, 80% more than a year earlier. Revenue, however, came in at EUR 120.5 million, only slightly above the previous year’s level. According to the company, existing capacity for measurement technology is already largely fully utilized through mid-2027.

At the Baader Investment Conference in Munich, management recently presented new arguments. Larger orders scheduled for late 2025 and early 2026 are expected to improve capacity utilization in the second half of the year. A more favorable product mix is also expected to boost the gross margin in the materials business. Among other things, there is demand for equipment for indium phosphide, a material used for optical data transmission in AI data centres. In the measurement technology sector, major memory and logic chip manufacturers are driving demand. Of particular interest: The revenue target of EUR 500 million for 2028 is expected to be achievable with existing customers alone. Compared to the approximately EUR 244 million projected for 2025, this would represent more than a doubling.

Until then, PVA TePla must grow significantly. In the first half of the year, EBITDA fell from EUR 14.9 to 4.4 million. For 2026, the management board therefore expects only the lower half of the range of EUR 26 to 31 million. Much depends on the fourth quarter. The positive impressions from the conference must first translate into better numbers. However, the outlook for 2027 and beyond is promising. For patient investors, the stock remains an interesting comeback bet. Earnings growth remains crucial for the valuation. A significantly higher operating profit is expected for the coming year, which makes the estimated P/E ratio of 25 for 2027 seem reasonable. Analysts are correspondingly confident. There are 8 “Buy” recommendations versus 2 “Hold” recommendations. No expert is currently advising “Sell”. With an average price target of just under EUR 44, analysts see nearly 40% upside potential.

Redcare Pharmacy Raises Forecast

Following the positive impression made at the Baader Investment Conference in Munich, Redcare Pharmacy immediately followed up with concrete news. On September 28, the online pharmacy raised its 2026 revenue forecast for the second time. The group is now expected to grow by 16 to 18%; previously, the target was 15 to 17%. For prescription drugs in Germany, management expects revenue of EUR 730 to 760 million, up from EUR 680 to 720 million. According to preliminary calculations, these revenues rose by 56% in the third quarter.

The expansion of the business is increasingly paying off. In the second quarter, consolidated revenue climbed 20% to EUR 853 million, and adjusted EBITDA rose 63% to EUR 29.6 million. The corresponding margin improved to 3.5%. More efficient marketing and economies of scale helped, even though the larger share of prescription drugs put pressure on the gross margin. For the full year, the adjusted EBITDA margin remains unchanged at 2.5 to 3%. The most recent upward revision therefore concerns revenue, not the margin target.

At the Baader Conference, CFO Hendrik Krampe outlined the next phase. The adjusted EBITDA margin is expected to rise to 5% by 2028; positive free cash flow is anticipated for 2027. The marketplace and advertising offerings for manufacturers provide additional revenue opportunities. These businesses are still small. The key factor remains how profitably Redcare acquires and retains new prescription customers. E-prescriptions open up significant growth potential, but competition and customer incentives could erode margins. The next test will come with the full quarterly results on October 29.

Approximately 35% upside potential! At least that is what the average analyst price target of just under EUR 95 promises. The distribution of recommendations is also favorable. Nine banks and research firms recommend buying, while three advise holding. Only one analyst currently recommends selling. The estimated P/E ratios of around 61 for 2027 and 25 for 2028 appear reasonable given the expected operating profit growth over the next two years. Redcare Pharmacy shares remain an option, particularly for long-term investors.

All three stocks are exciting and promising and must now live up to the heightened expectations. Almonty remains our favorite for risk-tolerant investors who are betting on the successful ramp-up of Sangdong and further price gains. At PVA TePla, orders promise growth, but profits have yet to materialize. Redcare is already delivering better operating results, and the e-prescription initiative opens up significant room for growth. However, competition and customer rebates could erode margins and pose risks.

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.