European hydrogen sector: "Exceeded our initial expectations" - Citi
22/01/2021 07:40
** Citi says it sees 2021 as a year of continued positive
momentum for the hydrogen equipment names
** "In our view, strong order momentum will support the
organic volume growth outlook, and we also see more "green
hydrogen roadmaps" at the country level," the broker adds
** It adds that growth momentum in the emerging green
hydrogen market has exceeded its initial expectations and it
raises its global green hydrogen capacity volume growth
assumptions through to 2030 by 36%
** Citi upgrades Nel NEL.OL to "buy" from "neutral" on
particularly strong growth in electrolyser orders with growth
potential in several key markets
** The brokerage says that Nel lack of strategic equity
partner may leave the company open to a possible approach from a
larger industrial entity seeking a partnership
** Citi maintains "buy" on Ceres CWR.L , continues to
favour the company's asset-light, royalty-based, technology
licence revenue model
** Also maintains "buy" on ITM Power ITM.L , as the
brokerage says it sees continued use of collaborative
partnerships with larger industrial partners an important
strategic advantage
** Citi keeps PowerCell Sweden PCELL.ST at "neutral",
says there is high risk involved in focusing towards the
automotive industry and competing against battery technology
((Tommyalexander.lund@thomsonreuters.com))