Nel ASA stock: It remains a bet!

Very cautiously, the Nel ASA share moved upwards in early trading on Thursday: In Frankfurt, the shares of the Norwegian hydrogen specialist improved by almost two percent to 1.63 euros. This is also the highest price for the Nel share since Wednesday last week, when it peaked at 1.69 euros. Therefore, there is hardly any talk of a real breakout, even though the news situation was quite good.

Target price for Nel raised to 2.51 euros

Because on Wednesday, the Canadian bank RBC had raised the price target for Nel ASA ( Daily Current Rating ) from 21 to 24 Norwegian kroner. Converted, this is 2.51 euros and would correspond to a price increase of more than 50 percent. No wonder that analyst Erwan Kerouredan left his rating for the Nel share at “Outperform”, while according to he also increased his sales estimates for the hydrogen group in his study. These, he expected, “largely compensate for the costs, which he also expects to be higher”.

And yet the RBC expert also made one thing clear: “Nel ASA remains one of the best bets on green hydrogen”, Kerouredan is quoted as saying. Certainty looks different. But that is true for the hydrogen industry as a whole. Neither Nel ASA nor Plug Power (USA) or PowerCell Sweden are currently profitable. What is traded on the stock exchange is above all future expectations.

Nel ASA loses a third of its stock market value
And in this sense, investors have recently become more sceptical about Nel. Despite the current recovery, the share is currently trading about 13 per cent below its level of a month ago. Within a year, Nel ASA has even lost a third of its market value. However, this still amounts to almost 2.7 billion US dollars. To put this in perspective: In the full year 2021, Nel ASA achieved a turnover of just under 90 million dollars.