Digging for Treasure in Europe: 3 Stocks Trading at Fire-Sale Prices

The European stock market has always been a treasure trove for savvy investors, but right now, it's littered with diamonds in the rough—companies trading far below their intrinsic value while sitting atop secular growth trends. Today, I'm targeting three names: Tikehau Capital (TKO.PA), Neste Oyj (NESTE.HE), and Andritz AG (ADRZF). These firms aren't just cheap; they're positioned to benefit from industry tailwinds, improving fundamentals, and macroeconomic shifts that could supercharge their growth. Let's dig in.

1. Tikehau Capital (TKO.PA): The French Financial Titan Trading at a 31% Discount

Current Price: €19.16 | Fair Value Estimate: €27.94 | Upside: +46% (long-term)

Tikehau Capital is a European alternative asset manager with €46.1 billion under management, yet its stock is languishing at a 31% discount to its intrinsic value. Analysts see this as a buying opportunity, with a consensus 12-month price target of €24.58—a 28% jump from today's price.

Why Buy Now?
- Growth Machine: Tikehau's earnings are projected to surge 73% in 2025 and 33% in 2026, outpacing the S&P 500's anemic growth.
- Valuation Discounts: Its P/E ratio of 21.3x is below peers but still below its “fair PE” of 29.8x, signaling undervaluation.
- Technical Setup: While short-term technicals suggest a “sell” due to falling trends, the long-term moving average points to a buy signal. A stop-loss isn't set here, but the stock's low volatility (1.46% daily) makes it a stable hold.

Action to Take: This is a “buy the dip” stock. The long-term fundamentals are too strong to ignore.

2. Neste Oyj (NESTE.HE): Renewable Fuel Pioneer at a 32% Discount

Current Price: €9.54 | Fair Value Estimate: €13.80 | Upside: +45%

Neste Oyj is a leader in sustainable aviation fuel (SAF) and renewable diesel, yet its shares are trading at a 32% discount to their intrinsic value. This is a company with 65% annual earnings growth potential through 2026, but it's been battered by debt fears and earnings misses.

Why Buy Now?
- Tailwinds: Governments worldwide are mandating SAF adoption. Neste's production capacity is set to expand, capitalizing on this $100 billion market.
- Valuation Boost: Its P/E ratio of 12.6x is half the industry average, and the stock's fair value estimate assumes a 22% upside even after recent volatility.
- Risks Managed: Yes, debt is high (62.5% Debt/Equity), but Neste's €3.1 billion in equity and €682 million in 2025 revenue give it a cushion.

Action to Take: The stock's 30% rally from its lows is just a start. Buy here, but keep an eye on debt renegotiations.

3. Andritz AG (ADRZF): Industrial Powerhouse at 46% Below Fair Value

Current Price: €62.25 | Fair Value Estimate: €116.66 | Upside: +87%

Andritz is a global leader in industrial machinery for renewable energy, pulp & paper, and hydropower—sectors booming as the world decarbonizes. Yet its shares are priced at just 46% of their intrinsic value.

Why Buy Now?
- Valuation Smash: Its P/E of 12.6x is a screaming buy versus its industry's 20.2x average.
- Technical Caution: While overbought (RSI14 at 87), the stock's long-term moving averages are bullish. A 17% near-term rise is projected, with support at €59.
- Growth Catalysts: Andritz's order backlog is bulging, especially in hydropower and hydrogen infrastructure.

Action to Take: This is a “set it and forget it” play. The stock is a multiyear growth story at a fire-sale price.

Final Take: Europe's Undervalued Gems Are a Must-Buy

These three stocks are classic Cramer picks: cheap, growing, and misunderstood. Tikehau's asset management dominance, Neste's renewable fuel moat, and Andritz's industrial clout all align with the energy transition and infrastructure build-out trends.

Key Risks to Acknowledge:
- Tikehau's short-term technicals.
- Neste's debt load.
- Andritz's overbought technicals.

But here's the bottom line: Growth beats gloom. With global inflation cooling and central banks pausing rate hikes, now's the time to pounce on these discounts.

Invest Now:
- Tikehau Capital (TKO.PA): Buy dips below €18.
- Neste Oyj (NESTE.HE): Accumulate below €9.80.
- Andritz AG (ADRZF): Wait for a pullback to €59 before diving in.

The European markets are offering a rare buffet of bargains. Don't let these three slip away.

Disclaimer: This is not financial advice. Always consult a licensed professional before making investment decisions.