Analysis: Why Nel ASA shares are still a loss-maker for investors!

Analysis: Why Nel ASA shares are still a loss-maker for investors!

According to a report by www.finanztrends.de, Nel ASA shares remain a huge loss-maker for investors, despite the optimistic price targets of some analysts. The share is currently trading at EUR 0.66 and has lost half of its market value since the beginning of the year.

The hydrogen industry remains a plaything of subsidy policy, especially in times of empty coffers. The decision to cancel a hydrogen project in Heide shows that green hydrogen is not economically competitive without massive subsidies. The industry is therefore subject to great uncertainty because technologies have not yet paid off.

Analysts had previously recommended buying Nel shares, but with completely utopian expectations. For example, a price target of the equivalent of 1.88 euros was given, which corresponds to almost tripling the current price. In comparison, the price target in April 2021 was 2.47 euros, when the share was actually quoted at around 2.50 euros.

The financial uncertainties and dependence on subsidies make the hydrogen industry a risky market in which long-term viability is not yet assured. This could further deter investors and make investing in hydrogen companies such as Nel ASA more difficult.

Overall, the situation in the hydrogen industry remains uncertain and characterized by uncertainty, which is reflected in the prices of the relevant companies. Long-term development depends heavily on political decisions and economic viability.