Publication date: Aug. 30, 2024
What is the current situation?
In May we already wrote about Alfen; The Dutch company that specializes in energy solutions such as smart grids, energy storage systems, and charging stations for Electric Vehicles.
We described the stock as not at all dull and with potential.
In recent months, it became clear once again that the stock is indeed not dull at all. The potential is there but the share price is also taking hits. Especially after the company, earlier this year had to sharply revise its revenue and margin forecast downwards for 2024.
This ultimately led to Alfen's share price being back to square one, hovering around its early 2020 price. The period before the huge rise from around €12 to eventually €120.
Is Alfen ready for the next chapter in its potential success story?
For the short term, there are certainly technical opportunities. The stock price is historically low, which means it has absorbed all the bad news. A technical recovery from the current level of around
€15 to the €26 to €30 zone is technically very likely. This recovery may be driven by the long-awaited interest rate cut in the US and possibly in the EU. This is also likely and will be able to give a company like Alfen a big boost.
For the long term, we still have to look at the developments in charging stations for Electric Vehicles. The whole process of moving from fossil fuel use to electric driving is one of well-established. After the initially very successful first phase, the demand for electric vehicles is currently waning. This is not unusual in such a large-scale conversion. It is important to determine what the next phase might be on the road from fossil to electric. Will fossil go away and will we really all drive on electricity soon?
It is a technical transition but also a culture switch but if the industry can indeed continue the rise of electric driving then there is a bright future for Alfen.
A closer look at the future of electric vehicles.
The future of electric vehicles does look good for the long term but has challenges in the short term. Key expectations include:
Growth acceleration: The global electric vehicle market is expected to continue to grow, driven by increasingly stringent emissions regulations, government incentives, and advances in battery technology. In Europe, stricter carbon emission standards for 2025 are likely to accelerate the adoption of electric vehicles, with affordable models expected to hit the market by the end of 2024 and into 2025.
In Europe, stricter carbon emission standards for 2025 are likely to accelerate the adoption of electric vehicles, with affordable models expected to hit the market by the end of 2024 and into 2025.
Battery technology and costs: Battery costs are expected to continue to fall, which should make electric vehicles more affordable and attractive to consumers. However, the rapid decline in battery prices has led to some market uncertainty, with potential buyers delaying purchases in anticipation of even lower prices.
Infrastructure development: The expansion of charging infrastructure is critical to the widespread adoption of electric vehicles. As more countries invest in this infrastructure, the ease and feasibility of owning an electric car will increase, further increasing sales.
Although the Electric Vehicle market faces several immediate hurdles, the long-term outlook remains strong overall, with significant growth expected as technology improves and regulatory pressures increase.
Conclusion:
Alfen has had a lot to endure and is at historically low levels as a result. For the short term, an interest rate cut could trigger a technical recovery from €15 to the €26 level (+70%).
For the long term, the signals are still green for the full adoption of electric vehicles. Alfen can benefit enormously from this in the long term.
As previously reported; do not expect a boring share price development at Alfen and determine your perception of risk concerning the enormous potential.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' insights and experiences. They are therefore for educational purposes only.
