Citi stays at 'buy' on hydrogen shares, sees significant upside

Citi stayed at a 'buy' on European names in the hydrogen space, telling clients that their shares had found a "base" following recent price drops.

ITM Power

36.04p

15:45 15/11/24

2.21%

0.78p

Indeed, the say room for share price gains in excess of 60% on average.

The broker's analysts blamed a slew of factors for the near 48% "correction" lower in share prices between February and April.

Those included thematic-driven outflows, cuts to earnings estimates, slower orders, a dearth of fresh policy catalysts and "good old-fashioned" profit taking.

However, orders for the group were expected to pick up, alongside the roll-out of dedicated solar/wind projects, and upcoming policy support - including from the Biden administration - were all anticipated.

The correction lower had also provided investors with a better entry point into the shares, adding to their "constructive" view on hydrogen equities.

Citi stayed at 'buy' on stock of ITM Power, Ceres Power, and Nel and 'neutral' on Powercell.