Bell Potter has an "overweight" recommendation on Vulcan Steel Limited (ASX: VSL) and a "buy" recommendation on Vulcan Energy Resources Limited (ASX: VUL).
Whilst these companies share a similar name, they operate independently in the materials sector.
Both have experienced heavy share price declines this year, which could make them especially appealing to value investors.
Here's what the broker had to say.
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Vulcan Energy Resources Limited (ASX:VUL)
The company is aiming to become the world's first Zero Carbon Lithium producer for electric vehicle batteries.
It operates in geothermal energy and lithium exploration/production across Europe (especially Germany) and Australia.
The share price has fallen 33.70% so far in 2025.
At the time of writing, the ASX materials company's share price sits at $3.62 each.
However, Bell Potter has a price target of $6.10.
This indicates an upside of 68.51%.
For context, a $2,000 investment at the current price would grow to roughly $3,370 if it reached Bell Potter's target price.
The broker's optimism is based on the company's debt free operation, and the Lionheart Project, located in Germany's Upper Rhine Valley region. The project is aiming to commercialise lithium, electricity and heat production from geothermal brines.
The broker said:
Lionheart's strategic location, development-ready stage and novel technology position VUL to benefit as lithium markets rebalance over the medium term.
Vulcan Steel Limited (ASX:VSL)
To reiterate, despite sharing a name, Vulcan Steel Limited (ASX:VSL) is a completely different holding.
The company is a steel and metal distributor and processor operating in Australia and New Zealand.
So far this year, its share price has fallen 14.74%.
Broker Bell Potter sees value in this ASX materials company's share price.
At the time of writing, its share price sits at $5.84, however the broker has a price target of $7.00.
This indicates almost 20% upside.
The broker estimates an increase in revenue and EBITDA moving into 2026.
According to a report from earlier this year:
Management expressed a cautious optimism, observing a notable uptick in business confidence in Queensland and steady improvement in large clients in New Zealand. They noted that while the second half would continue to face operational difficulties due to fewer working days, prospects for growth are emerging.
