Jefferies downgrades Nel, ups Ceres as hydrogen sector faces short-term challenges
** Jefferies cuts Nel NEL.OL to "underperform" saying the Norwegian hydrogen solutions provider's order momentum has suffered from operational delays
** The current backlog of about NOK 1.9 billion ($171.9 million) covers only about one year's worth of revenues, the broker says
** It does not exclude the possibility of further financing needs by the end of 2025, also due to product development costs
** Nel's shares touch their lowest price since 2018, and are down 4.3% by 1008 GMT
** Within the hydrogen sector, Jefferies upgrades Ceres Power CWR.L on promising recent license contracts with Denso in Japan and Delta in Taiwan
** "Thanks to its high-margin, asset-light licensing model, Ceres looks best positioned once volumes pick-up," it says
** The Ceres Power shares rise 4.5%
COMPANY | RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
Nel | Underperform | Hold | NOK 3 | NOK 5.5 |
Ceres Power | Buy | Hold | 265p | 190p |
PowerCell | Hold | - | SEK 35 | SEK 36 |
ITM Power | Buy | - | 60p | 80p |
($1 = 11.0527 Norwegian crowns)
Reporting by Anna Chaberska
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