Barclays starts ITM Power at 'overweight', firm to be at forefront of 'decarbonisation'

Analysts at Barclays started coverage of ITM Power at 'Overweight' with an 800.0p target price, arguing that the firm was likely to be near the forefront of many industries' and governments' decarbonisation strategies.

Hydrogen itself was a megatrend in that fight and while there was a range of possible long-term outcomes for companies in that space, "all point to a multi-year growth industry that we see as undervalued today," they said.

In particular, so-called 'Green' hydrogen - the cleanest method of producing that gas - was already "attracting unprecedented investment and policy support."

And for green hydrogen to meet 15% of the world's demand for the stuff by 2030, the size of the annual electrolyser market would need to grow 150-fold.

Furthermore, cost were set to halve by 2025 as the industry gained scale, allowing green hydrogen to be cost-competitive with 'Grey' hydrogen, the far dirtier version now dominant.

Within the same research note, which covered its now renamed European Energy Services, previously European Oil Services and Drilling, Barclays also kicked off coverage of Nel at Overweight (Target price: NOK40.5) and that of McPhy Energy at 'Equalweight' (Target price: €49.0).