(Finance) – Intesa Sanpaolo has reduced to 11.7 euros per share (from 13 euros) the target price on ErreDuea company listed on Euronext Growth Milan and active in the field of electrolysers for the generation of clean hydrogen, confirming the judgment on the title to “Buy” given the potential upside of 29%. The revision of the recommendation came after the company reported its first half 2023 results, with analysts speaking of “solid interim results”, which show core revenues growing by 44% on an annual basis, with EBITDA margin increasing to 35.9% (compared to 32.1% in FY22).
The order book amounting to 10.5 million euros should “give visibility” to FY23E revenue estimates. NFP remains “solid” on the heels of early tangible evidence of an acceleration of the cell module market for larger alkaline electrolyzers, which may take longer than originally expected.
In the wake of market indications that the first adoption of larger alkaline electrolyzer designs is likely to move forward, Intesa revises revenue estimates “more conservatively”. main ones for 2023 and 2024. On the one hand, analysts recognize the solid performance recorded so far, on the other hand, they foresee some risks that the increase in inflation and financial costs could pose on the global demand for hydrogen plants at the global.