© Reuters. NEL shares drop on Morgan Stanley downgrade
Morgan Stanley’s recent report presented a cautious and detailed analysis of the clean hydrogen industry, focusing on the challenges and uncertainties that lie ahead. The report underscores the industry’s increasing dependence on subsidies due to rising rates and renewable electricity prices, which could result in delays in project pipelines and slower adoption rates. The report also reflects on the underperformance of hydrogen OEMs in 2023 (down approximately 40%), largely attributed to higher interest rates and delayed adoption, setting a tone of uncertainty for the industry’s outlook in 2024.
Morgan Stanley downgraded Nel (NEL.OL) to Equal Weight from Overweight with a new price target of NOK9/share. As a consequence, the company’s shares dropped around 9% intra-day today, closing with nearly a 3% loss.
NEL’s shares fell by over 45% in 2023, a decline attributed to the challenging higher rate environment and the delayed adoption of hydrogen.
The report predicts that NEL’s fiscal 2023 revenues and EBITDA will likely meet consensus expectations, with no major positive surprises anticipated.
Analysts believe “that…
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