(News Bulletin 247) – Royal Bank of Canada on Friday renewed its ‘outperformance’ opinion and its price target of 16 euros on McPhy Energy following the signing yesterday of a license agreement with the Indian Larsen & Toubro.
In a reaction note, the Canadian broker considers that this is a ‘positive’ development which will allow the specialist in hydrogen production equipment to open the doors to a new potential market.
While RBC says it appreciates McPhy’s industrial assets, which it believes puts it in a good position to benefit from the demand surrounding industrial projects related to green hydrogen in Europe, the broker underlines that the agreement concluded with Larsen & Toubro represents a much larger market, but also the promise of more comfortable profit margins due to the advantages of the licensing model.
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