Energy infrastructure, electromobility, innovative battery technologies, artificial intelligence, and robotics are investment themes that will remain exciting in the coming year. These megatrends are establishing themselves thanks to sustained high demand, which is reflected in rising share prices for industry representatives. Innovative battery storage systems are becoming increasingly important. New high-performance batteries store more energy, reduce charging times, and offer greater safety. One promising second-tier company that is often overlooked is Canadian battery specialist NEO Battery Materials. We highlight its potential and that of established players Siemens Energy and BYD.
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Siemens Energy – New all-time high, analysts remain bullish
Siemens Energy covers almost the entire energy value chain, from energy generation and transmission to storage. The Company is also one of the global market leaders in renewable energy. The stock is one of the top performers in the leading index this year and reached a new all-time high of EUR 120 a few days ago, bringing the Company’s value to over EUR 100 billion.
Despite the record rally, analysts believe the shares have further upside potential. Most recently, experts at JPMorgan and Bank of America raised their price targets to EUR 160 and EUR 170, respectively. Siemens Energy is benefiting from the high demand for electricity from AI data centers and from the trends toward energy security and electrification.
Against the backdrop of strong business performance, the Company recently raised its medium-term targets and announced a share buyback program. Both announcements fueled the share price once again. Siemens Energy is forecasting annual revenue growth in the high double-digit range and an increase in the adjusted earnings margin to 14-16%. The Company plans to acquire up to EUR 6 billion worth of its own shares by the end of fiscal 2028.
NEO Battery Materials – Innovative player in the second tier
NEO Battery Materials (TSXV:NBM) is pushing the boundaries of battery technology by focusing on one of the most critical components of a lithium-ion cell: the anode. The anode determines a battery’s energy density, charging speed, and overall lifespan. With NBMSiDE®, the Company has developed a patented and cost-effective manufacturing process for silicon anode materials. This approach is superior to the use of graphite electrodes, as silicon can store significantly more energy.
The recently signed Joint Product Development Agreement with the US company Nascent Materials takes development one step further. The collaboration merges NEO’s silicon anode material with Nascent’s LFP cathode technology. The result is a new generation of lithium-ion batteries that offer high energy density, fast charging capability, and improved safety. Initially, the partnership will focus on designing high-performance batteries for defense drones.
On the road to industrial production, the Canadians have been able to publish a series of positive updates in recent months. At the end of November, a production-ready factory was leased in South Korea, which could supply automotive manufacturers in the future. In addition, the Company reported incoming orders worth CAD 2.5 million from an industrial robotics firm. NEO is also supplying CAD 3 million worth of anode material to a South Korean manufacturer of unmanned combat aircraft and drones. As part of the collaboration, complete battery systems are being developed for various types of drones.
This means that the Canadians are scoring points in several respects. Firstly, the innovative approach is making a valuable contribution to the further development of battery technology; secondly, secure supply chains can be demonstrated; and thirdly, commercialization is progressing. The stock is traded in Canada under the ticker symbol NBM with a valuation of around CAD 70 million.
BYD – Cost leadership with scratches?
The current sales figures for automobiles in China, the world’s largest market, show a decline in November as well, but at 8.5% compared to the previous year, the decline is surprisingly significant. It stands to reason that the majority of potential buyers have already made their purchases in light of the fact that government subsidies are set to expire at the end of December. Electric vehicles and plug-in hybrids continue to enjoy high demand and together account for almost 60% of units sold.
Although BYD is strategically advantaged over competitors such as CATL, thanks to its deep integration in battery production, domestic competitive pressure is not leaving the group unscathed. Several suppliers are engaged in a fierce price war to secure market share. BYD is countering this trend with stronger international expansion. By covering the value chain from lithium processing to battery production and benefiting from the fact that investments in production facilities, including depreciation, have already been largely covered, BYD is the cost leader in the industry.
The emerging growth and the Company valuation have prompted the majority of analysts to recommend the share as a “Buy.” On average, experts believe the shares have upside potential of around one-third. BYD is valued at the equivalent of EUR 104 billion. According to average analyst estimates, the 2026 P/E ratio is a moderate 16.4.
Demand trends remain intact. This means that all of the companies mentioned are among the beneficiaries. Analysts believe that industry giants such as Siemens Energy and BYD will continue to perform well. Canadian company NEO Battery Materials is still under the radar, but has the potential to make a valuable contribution to the further development of battery technology through innovative approaches and partnerships.
Conflict of interest
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