Jefferies plugs into hydrogen ecosystem

Mcphy Energy SA

09/11/2021 08:40

** Jefferies intiates coverage of multiple companies in the
hydrogen sector, with "buy" recommendations on ITM  ITM.L , Nel
 NEL.OL  and Powercell  PCELL.ST , and "hold" on McPhy
 MCPHY.PA  and Ceres  CWR.L 
    ** It says existing industrial applications of hydrogen
already provide a sizeable market, but further capital raises
may be necessary
    ** It prefers "established players with partnerships" and
companies working with polymer electrolyte membrane electrolysis
technology (PEM)
    ** The broker estimates that hydrogen companies should
generate positive EBITA only from 2025, with 2030 "a real
inflection" point
    ** "Until renewable generation is plentiful, material
developments in heating and transport are less likely", it says
    ** Jefferies adds that its positive view needs steps towards
replacement of carbon emitting hydrogen production - such as
ammonia production and refining - to convert

 (Reporting by Olivier Cherfan. Editing by Jane Merriman)
 ((olivier.cherfan@thomsonreuters.com))