Nel ASA share: price decline continues - what happens next in 2024? Analysis & forecast

Nel ASA share: price decline continues - what happens next in 2024? Analysis & forecast

According to a report by www.sharedeals.de,

The Nel ASA share has already lost over -16% in value since the beginning of the year and is falling to a new three-year low almost every day. The question is whether Nel ASA will manage to stop its deep fall on the stock market.

Nel ASA offers solutions for the production, storage and distribution of hydrogen derived from electrical energy. The core business of the Norwegian company based in Oslo is the production of electrolyzers for producing hydrogen. The company is currently worth around €875 million.

There is currently nothing to suggest that the Nel ASA share will find a bottom in the coming weeks and months. There were no major orders or improvements in the outlook that could end the downtrend.

The Nel ASA share chart has been painting a terrible picture for some time. The hydrogen stock has not escaped its downward trend for over a year and has fallen to a new three-year low every month. Support lines no longer seem to have any significance for Nel ASA shares.

The consensus price target of the analyst community is well above the current price level of the Nel ASA share. Although many experts have revised their forecasts for the fair value of the share significantly downwards in recent months, the consensus price target is still above the current stock market price.

There is currently neither a technical nor a fundamental reason for investors to invest in the Nel ASA share. The hydrogen industry may be exciting overall, but there will only be an investment case for Nel ASA once the company presents further growth while improving profitability.

Overall, Nel ASA is in a very critical situation. If the Norwegians can no longer generate attractive sales growth in 2024, the last investors will probably also abandon Nel ASA shares. There is still no hope in terms of profitability, and whether the company will ever turn a profit is completely unclear. Investors must have a lot of patience when it comes to reaching the break-even point.