JP Morgan prefers ITM Power over NEL ASA, stays 'overweight' but cuts target

Analysts at JP Morgan told clients they preferred shares of ITM Power over those of rival NEL ASA, arguing that the latter would be a relative winner among electrolyser original equipment manufacturers in the back half of 2021.

Electrolyser OEMs had underperformed the wider Alternative Energy space in the first half of the year and the outlook for them remained mixed, they said.

Yet "several" policy announcements might provide a catalyst for ever larger green project approvals in the back half of 2021 and thus for electrolyser OEMs.

Nevertheless, they cut their target price for NEL ASA from 28.0 Norwegian krone to Nkr 15.0 and downgraded their recommendation to 'underweight'.

On ITM Power on the other hand they remained at 'overweight', but also reduced their target price, from 700.0p to 550.0p.