18. August 2021 | 11:37 CET
Nel ASA, Enapter, Nordex - Highly acclaimed and deeply fallen
The euphoria around renewable energy shares was huge last year. Companies from the hydrogen, wind energy or electromobility sectors were able to multiply and reached valuations that they would never justify in the next few years. This run was fueled by billion-dollar programs to promote the energy turnaround by politicians. A market shakeout has been underway for months. Which stocks are now promising and which have further correction potential?
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ISIN: NEL ASA NK-_20 | NO0010081235 , ENAPTER AG INH O.N. | DE000A255G02 , NORDEX SE O.N. | DE000A0D6554
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
Share with relative strength
Compared to its peer group in the hydrogen segment - Nel ASA, for example, still has a market capitalization of over EUR 2.00 billion even after a 50% correction - Heidelberg-based Enapter AG is still comparatively modestly valued at EUR 620.30 million. Yet the Company, which was recently named a "Technology Pioneer 2021" by the World Economic Forum for its innovative AEM electrolysis technology, has enormous imagination. This is thanks to the Enapter campus's construction in Saerbeck, North Rhine-Westphalia, and the start of the mass production plant, which is scheduled for completion at the end of 2022.
Only recently, supported by politics, Enapter Immobilien GmbH, a wholly-owned subsidiary of Enapter AG, received a notice for a non-repayable grant amounting to EUR 7.16 million from KFW - the production of green hydrogen "Made in Germany" is to be pushed further. Green hydrogen is seen as the missing piece of the puzzle for the energy transition. Currently, the prices for production and logistics are still too high. The vision of the CEO, Sebastian-Justus Schmidt, is to make green hydrogen significantly cheaper compared to diesel with the help of the AEM electrolysis technology.
The analysts at First Berlin Equity Research confirmed their buy rating and raised the price target from EUR 26.00 to EUR 34.00 following the announcement of the figures for the first half of the year. For the experts, the decisive factors for the significant increase in estimates were important progress in the areas of electrolyzer production, planning of the mass production facility, personnel recruitment, sales expansion, acquisition of subsidies and equity capital procurement.
It is coming thick and fast
Shortly before the quarterly figures, expected on August 19, things are coming to a head for the Norwegian hydrogen specialist Nel ASA. Falling below the critical support at EUR 1.35, there was a further sell-off with a high volume to EUR 1.29. The next target is the support area at EUR 1.18. Should weaker-than-expected figures hit the ticker on Thursday, the worst-case scenario could even see a drop below the critical EUR 1.00 mark. A year ago, not even the biggest pessimist would have expected that Nel ASA could once again mutate into a penny stock.
Despite positive analyst opinions, the downward slide of the Nordex share continues. The analyst firm Jefferies continues to recommend the stock as a buy and assigned a price target of EUR 25. The figures turned out well. However, the price pressure in the wind energy sector is pointed out, which is why the estimate for the profitability of the Hamburg company was lowered. The slide below the EUR 15.31 mark marked a new low for the year. The share price is quoted at EUR 14.90, a small support at EUR 14.74 could stop the slide back to the EUR 14 area, but an entry at the current level seems extremely risky.
There is no question that the future belongs to renewable energies. Decarbonization is further promoted by political support programs and the switch from fossil energy sources to renewable systems. Enapter is the market leader in the promising AEM electrolysis technology, through which green hydrogen can be produced cost-effectively in the coming years. In contrast, the former high flyers Nel ASA and Nordex currently require caution from a technical point of view.