Considering the potential benefits, yet pondering over immediate sale of Nel Asa's stocks?
Nel ASA Stock: Bearish Outlook Ahead? By Matthias Fischer
Hydrogen company Nel ASA's stock is flying high, but not for long, according to analysts at Danske Bank and JP Morgan. Joakim Pettersson, an analyst at Danske Bank, has downgraded the stock from "Hold" to "Sell," setting the target price at 13 Norwegian Kroner (NOK). During the second quarter, Nel ASA's results were less than stellar, leading to Pettersson's pessimistic stance.
Likewise, US bank JP Morgan has lowered its target price for Nel ASA following the quarterly results, from 11.10 NOK to 10.10 NOK, maintaining its rating at "Underweight." Analyst Patrick Jones at JP Morgan cited the recent outperformance of Nel ASA's stock as the reason, leaving little room for further growth.
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Although analysts haven't explicitly stated the duration of the projected downtrend, the stock's troubled financial performance and recent bearish commentary suggest a potentially long-lasting bearish outlook. In fact, technical analysis points to continued declines until a new bottom pivot is found. This implies that the downtrend could persist throughout 2025 or even beyond.
However, it's essential to recognize that specific quotes or precise timeframes from Joakim Pettersson and Patrick Jones regarding the exact length of the downtrend are not available in the current data. Regardless, it's clear that analysts anticipate a challenging period for Nel ASA's stock in the near future.
In light of the analysts' bearish commentary and Nel ASA's recent finance performance, investing in the company's stock might not be advisable at this time, as a potentially long-lasting bearish outlook is projected. Technical analysis further supports this assertion, indicating that the stock's declines may continue until a new bottom pivot is found, possibly persisting throughout 2025 or beyond.
