Despite negative quarterly figures, the Plug Power stock has developed positively in recent days. Is this the turnaround for the hydrogen pure play? The Americans recently reported progress on a mega-project.
DynaCERT is strengthening its position with an industry expert and former Daimler manager. The technology company is thus preparing for the breakthrough of its products aimed at reducing emissions in diesel vehicles. All that is missing now is VERRA certification for the issue of CO2 certificates.
At Thyssenkrupp Nucera, the quarterly figures currently have to be digested. Analyst comments sound somewhat disappointed, but the price targets still leave room for growth for the German hydrogen hopeful.
DynaCERT: Former Daimler manager for the rollout
The DynaCERT (TSX:DYA) share price has been moving sideways for months, significantly outperforming the hydrogen sector. DynaCERT’s core business is its HydraGEN™ technology. The patented system can be used to retrofit conventional diesel engines to reduce fuel consumption and pollutant emissions. VERRA certification of the DynaCERT product range is required for an upward breakout of the stock. VERRA has developed the world’s leading quality standard for CO2 certificates. VERRA certification would be the product accolade that would lift the company into a new league. On the one hand, certification would further enhance the value of HydraGEN™ products for customers, and DynaCERT could establish a new and highly profitable business segment by trading CO2 certificates.
DynaCERT is positioning itself for the expected explosion in demand following VERRA certification by appointing a new top manager, Bernd Krüper from Germany, as president and member of the board of directors. He will lead the company’s further development and, in particular, its international expansion with the aim of increasing the sales volume of existing and new products. Krüper has more than 30 years of experience in the industry, including six years with the Daimler Group. He was also CEO of Motorenfabrik Hatz GmbH for six years and has 18 years of management experience at Rolls-Royce Power Systems AG, Tognum AG and MTU Friedrichshafen GmbH.
“I am excited about DynaCERT’s mission and its continued progress in hydrogen technology. By planning additional key initiatives in the coming months and years, I look forward to leading and driving DynaCERT’s influence and positive impact in the hydrogen market,” Krüper said.
In addition to this appointment, there is further positive news. DynaCERT is currently raising up to C$2.5 million as part of a capital increase. At C$0.15, the placement price is even slightly above the current share price. It is common for the price in such a capital measure to be significantly below the market price.
Plug Power: One step closer to a major order
There is not much sign of growth at Plug Power (NDAQ:PLUG) at the moment. In the past quarter, turnover fell by 42.8% to US$120 million. At the same time, the net loss rose from -US$208 million to -US$296 million. The hydrogen pure play thus missed analysts’ estimates. Nevertheless, the share price has risen significantly from EUR 2.36 to EUR 3.46 in recent weeks. This can only be because of the relief that Plug Power has apparently got the short-term financing difficulties under control.
In addition, an update on a major project created a positive mood. It is a 3-gigawatt plant for converting green hydrogen into ammonia. It could be built for the Australian company Allied Green Ammonia. To win the contract, financing must first be secured. The basis for the funding is a so-called Basic Engineering and Design Package (BEDP). Allied Green and Plug Power want to start preparing the BEDP now. However, it will likely take until the end of 2025 before Allied Green can put the plant into operation and produce 2,700 tons of green ammonia per day.
Thyssenkrupp Nucera with a weak outlook: How analysts are reacting
Investors also need to be patient with Thyssenkrupp Nucera (PINL:THYKF). The German hydrogen hopeful is growing more slowly than investors had hoped. As part of the last quarterly figures, the company specified its annual forecast of EUR 820 million to 900 million in revenue. This was below the consensus estimates of analysts. For example, RBC had expected EUR 979 million. Despite this, the analysts at the Canadian bank maintained their “buy” recommendation with a price target of EUR 21.
Other analysts have reduced their price targets: Berenberg from EUR 22 to EUR 18, Deutsche Bank from EUR 27 to EUR 23, and Bernstein from EUR 22.50 to EUR 21. However, all price targets are still well above the current price level of EUR 11.60.
Only the experts at Goldman Sachs are more cautious. They rate the shares of Thyssenkrupp Nucera as “neutral.” The price target was reduced from EUR 16 to EUR 14. Although the Company continues to lead the industry in terms of major orders, sales are nevertheless growing more slowly than expected.
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