Canaccord Genuity takes 'much more cautious' view of Eqtec

Canaccord Genuity said Eqtec had "a successful close" to 2021, with a number of further projects firming up, most notably a French contaminated plastics project and increasing interest in hydrogen offtake from several projects.

Eqtec's smaller projects, and in particular its multiple market development centres, were also said to be "progressing well", as were the company's relationships with major delivery partners like Wood, and Canaccord sees this delivering "strong growth" in 2022 and thereafter.

However, the Canadian bank said it was taking the much more cautious view in order to reflect the impact of Covid-19 on project progression, specifically the movement to the right on Eqtec's large refuse-derived fuel projects in the UK.

"We now see only one of these large projects reaching financial close this year, and this has a material impact on overall forecasts. We note that we still expect revenue to broadly triple this year, driven by revenue recognition on committed Italian, Croatian, Greek, French and US projects. This wide roster of projects shows EQTEC's proven market-leading capabilities in syngas, and we continue to have a positive outlook for the group," said Canaccord, which retained its 'speculative buy' rating on the stock.