Jefferies rates ITM, Nel at 'buy' on green hydrogen opportunity
11/10/2022 12:08
** Jefferies sees an investment opportunity in the hydrogen
sector, with the cheapest entry point in over two years and a
brighter outlook
** It prefers green electrolyser manufacturers at the early
stages of the green H2 value chain, relaunching coverage of ITM
Power ITM.L and Nel NEL.OL at "buy"
** Policy momentum for the sector is up, with the U.S.
Inflation Reduction Act making the cost of green H2 competitive
with grey/blue, the broker says
** Its analysis suggests the levelised cost of green H2 is
about 50% cheaper than grey H2 in Europe, based on extremely
high gas prices vs more normalised renewable power purchase
agreements
** The broker downgrades PowerCell PCELL.ST to "hold" from
"buy" as the political momentum favours green hydrogen
production vs end-use fuel cells in the near term
** It resumes Ceres Power CWR.L with "hold", citing the
lack of control and visibility around the launch and mass scale
manufacturing timings
(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))