Oddo BHF has reaffirmed its 'underperform' rating on McPhy Energy, with a price target lowered from 3.5 to 2.6 euros, taking into account a higher risk premium in its valuation in the wake of a business update.

Although the specialist in hydrogen production and distribution equipment reported full-year sales close to its expectations, the research department points to a weaker backlog, leading it to revise its 2024 expectations downwards.

'The sector as a whole remains largely under pressure, and McPhy has not been spared, with a fall of 72% in 2023 and 23% since the start of the year. Visibility remains uncertain, while the company will have to manage the ramp-up of Gigafoctory", warns the analyst.

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