Zefiro Methane: Positive News Flow Continues
Zefiro’s investment story is extremely compelling. The Canadian company addresses a critical environmental issue with massive market potential and holds a leading position in this niche. The company delivers one piece of good news after another. However, the stock’s valuation does not yet reflect this, creating excellent opportunities for active investors.
The Canadian company is focusing on a serious problem that has been inadequately addressed to date: methane emissions from decommissioned or abandoned oil and gas wells. Methane is considered one of the most climate-damaging greenhouse gases and is many times more harmful than CO₂. According to expert estimates, there are approximately 2.2 million abandoned (orphaned) oil and gas wells in the US, suggesting a market potential of up to USD 600 billion. The market is also gaining political momentum from the “Infrastructure Investment and Jobs Act.” Under this program, USD 4.7 billion is available for remediation efforts.
Zefiro pursues an integrated business model consisting of three core areas. The company provides technical services for detecting and measuring methane leaks, systematically surveying old oil and gas fields and identifying emission sources. Zefiro also handles the physical decommissioning and sealing of wells (so-called plug-and-abandonment work). In addition, the company markets credits based on the emissions saved.
Zefiro operates in the US through its wholly-owned subsidiary, Plants & Goodwin (P&G), and consistently reports operational progress. With the acquisition of Viking Well Service equipment, the Canadian company was able to strengthen its position in core regions and expand its footprint, and is now active in 13 US states. Through the acquisition, the company expects revenue to increase by approximately USD 10 million in the coming fiscal year. For the fiscal year ending in June, total revenues of CAD 44 million were projected.
The expansion of operating capacity following the aforementioned acquisition was also key to the recently announced coup. Zefiro secured four new corporate clients at once. The work involves the decommissioning of various types of wells, primarily in the US state of Ohio. The company expects this to generate USD 19.6 million in revenue by mid-May 2029.
The share is currently trading at around CAD 0.70, valuing the company at approximately CAD 63 million or USD 45 million. Given expected revenue of USD 50 million or more in the coming fiscal year and based on a typical revenue multiple of 2 to 3, the stock has the potential to at least double in value over the next 12 months.
SAP: Subdued Growth
After a small rally in recent weeks, the software company’s share price is heading south again. This was triggered by the latest figures from its US rival Oracle. Although the US software and data center group’s figures showed solid growth that exceeded analysts’ estimates, the prospect of high investment dampened investor sentiment.
SAP’s business is not running as smoothly as many investors had hoped. Europe’s largest software manufacturer did report impressive revenue growth of 19% to EUR 9.6 billion in the first quarter, with cloud software driving the momentum. However, SAP also signalled that this growth would not continue in the current year and would not pick up significantly again until 2027.
Currently, the stock is trading around EUR 144 with a P/E ratio of 21 for 2026 and 18 for 2027. On average, analysts have set a price target of EUR 215, which represents an upside of over 40%. The shares have fallen by 30% since the start of the year.
TeamViewer: Seal of Approval and Skepticism
TeamViewer was recently named a Leader in Gartner’s Magic Quadrant for Digital Employee Experience (DEX) Management Tools for the third consecutive year. DEX refers to software solutions that measure, analyze, and improve how employees experience their work environment. Gartner is considered one of the most important analysis and consulting firms in the IT market worldwide. The designation as a Leader is based on a strong market position and a compelling future strategy.
However, this news—which essentially confirms the company’s strategy and leading position—failed to capture the stock market’s interest. Why? Well, the top position in the DEX market is held by the US firm 1E, which was acquired by the Germans last year. Its DEX solution had previously been classified as a “Leader.” However, 1E’s business performance has been disappointing since the acquisition.
TeamViewer is currently transforming from a traditional remote maintenance provider into an AI-powered platform for the digital workplace. Investors, however, are skeptical as to whether this transition will succeed, whether TeamViewer will return to a growth trajectory as promised, and whether the company can permanently hold its own against major players like Microsoft and Cisco.
The chart shows that the good times are over. At a price of EUR 5.50, the company is valued at around EUR 900 million. Analysts have an average target share price of EUR 7.84, implying an upside potential of 40%.
Where there are opportunities, there are also risks. Investors remain cautious regarding SAP and TeamViewer, as the future remains unclear. Zefiro, on the other hand, is on the sunny side with strong and increasing growth in a niche market. The stock has significant upside potential.
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