RBC starts 'strategically positioned' McPhy with 'outperform'

Mcphy Energy SA

22/09/2022 11:08

** RBC initiates coverage of McPhy Energy  MCPHY.PA  with
"outperform," seeing the hydrogen technologies company as
"strategically positioned to cater to the green hydrogen demand
coming from Europe"
        ** "McPhy's focused business model, strategic asset
location and strong partnerships lower execution risk and give
visibility on near-term earnings," the brokerage says
  
    ** The recently granted Important Projects of Common
European Interest (IPCEI) status provides McPhy "with not only
funding, but visibility on near-term business growth", it adds
    ** RBC sees McPhy's partnerships with major partners like
EDF  EDF.PA  and Engineering, Procurement and Construction (EPC)
firms as key to speed up its pipeline in Europe
    ** The brokerage estimates McPhy could reach EBIT breakeven
in 2026, reflecting a commercial and execution profile similar
to peers such as ITM  ITM.L  and Nel  NEL.OL 
    ** McPhy stock, down around 61% YTD, is up about 1% at 0950
GMT
 (Reporting by Lina Golovnya)
 ((lina.golovnya@tr.com))