McPhy Energy lost 5% after a trading update from the hydrogen equipment specialist, prompting Oddo BHF to reaffirm its 'underperform' rating on the stock, with a price target lowered from 3.5 to 2.6 euros.

While full-year sales, up 17% to 18.8 million euros, were in line with the company's target and close to Oddo BHF's expectations, the research firm points to a weaker backlog, leading it to revise its 2024 expectations downwards.

McPhy saw its firm order intake fall by 56% to 13 million euros, and its total backlog to 23.8 million by the end of 2023. Visibility remains uncertain, while the company will have to manage the ramp-up of Gigafoctory", warns Oddo BHF.

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