RBC starts Lhyfe with 'outperform' on strong growth potential, limited risk

Lhyfe SA

09/10/2024 10:40

** RBC initiates Lhyfe  LHYFE.PA  with "outperform" saying
the French hydrogen firm's execution capabilities shown in the
first years of operations seem to match its aggressive growth
plans
    ** The broker notes Lhyfe has a growing list of offtake
contracts coupled with support from private/public backers that
help de-risk both earnings and financing
    ** RBC points to the company's very high leverage, which it
sees as "fairly unusual" for an early stage growth company and
may be perceived as a risk
    ** But it notes there are no near-term repayment or covenant
stress issues, while revenue visibility reduces financing risk
further out
    ** Two out of four analysts rate Lhyfe "strong buy" or
"buy", with ​two at "hold"

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))