McPhy Energy: Portzamparc upgrades stock

(CercleFinance.com) - On Thursday Portzamparc upgraded its rating on McPhy Energy shares from "hold" to "buy", judging the stock's recent correction in the stock to be "excessive".


In a report, the broker considers the announcement of a public aid of 114 million euros granted by the French state for the project of "gigafactory" of electrolysers studied by the company.

This amount is unsurprising, the analyst says, since President Macron himself had announced last February the release of 114 million euros in subsidies from European funds.

Taking into account the aid of 10 million euros from the Maugis fund (fed by the penalty of 50 million euros from General Electric for non-creation of jobs) in case of installation in the Territory of Belfort, it is a total envelope of 124 million euros that McPhy should benefit for the project, he continues.

This amount seems particularly significant given the current level of investment expenditure and will strengthen the company's already "solid" balance sheet, with more than 170 million euros in net cash at the end of 2021.

However, Portzamparc said that it has reduced its target price for the stock to 11.4 euros from 15.3 euros previously. The share is currently up 1.7% at 9.2 euros.


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