Post-Hydrogen Rush: Predicting the Future for Nel ASA and Plug Power
Here's a Fresh Take on Nel ASA and Plug Power's Stock Performance
In the first couple of months of 2023, both Nel ASA and Plug Power have shown promising performances, bucking the downward trend of hydrogen stocks in the previous year. But should investors hop on the bandwagon or cash out? Let's dive into the details.
Nel ASA's ride so far
Nel ASA's stock has been on a roll this year, gaining a significant 16%. While the charts look optimistic, the financials aren't as rosy. The company is forecasted to maintain a loss per share of around 3.8 cents in 2023, similar to the previous year's 4.1 cents. There's no P/E ratio or dividend yield mentioned. However, revenue is expected to surge from 80.52 million euros to 141.7 million euros. Analysts are treading cautiously: eight recommend buying, ten are on the fence, and eleven suggest selling. The average price target of 12.79 Norwegian Kroner is 21.2% below the current price, which may prompt investors to take profits or jump in for the long haul.
Plug Power's Power Move
Plug Power, on the other hand, seems to be on a different trajectory. Despite a struggling chart position, the stock has gained a substantial 41% this year. Analysts seem bullish, with twenty-three recommending buying, nine sticking to the sidelines, and none calling for a sell. The average price target of $27.50 suggests a potential increase of 57.7%. Revenue is projected to increase from 761 million euros to 1.27 billion, and the loss per share is expected to drop from 94 cents to 51 cents.
Risk-tolerant investors might see this as an opportunity to jump aboard the Plug Power train, using a dip at the 200-day line as an entry point.
By the way, both Nel ASA and Plug Power are part of the BÖRSE ONLINE Green Future Index.
Disclosure: The price of the financial instruments is derived from an index used as the underlying. Boersenmedien AG holds the rights to this index and has a license agreement with the issuer of the securities. Boersenmedien AG receives remuneration from the issuer.
Insights:
- Nel ASA's 2023 Outlook: Last year, Nel ASA experienced a decline of 50.27%. Analysts have been cautious about its future performance, with the potential for drops in stock price.
- Plug Power's 2023 Outlook: Information specific to Plug Power's 2023 performance wasn't found in the search results. However, the hydrogen sector, which includes Plug Power, is subject to significant fluctuations due to technological advancements, market demand, and regulatory changes.
- General Trends: Investors and analysts evaluate these companies based on their technological innovation, strategic partnerships, and the growth potential of the hydrogen sector.
- Despite a promising 16% gain in Nel ASA's stock price in 2023, the company is expected to maintain a loss per share similar to the previous year, with analysts treading cautiously.
- Plug Power, on the other hand, has gained an impressive 41% this year, with analysts more bullish about its future performance and an average price target suggesting a potential increase of 57.7%.
- Both Nel ASA and Plug Power are included in the BÖRSE ONLINE Green Future Index, indicating a focus on green technologies and sustainable investments.
- The hydrogen sector, which includes these two companies, is subject to significant fluctuations due to technological advancements, market demand, and regulatory changes, making it a risky yet potentially lucrative area for investing in 2023.
