Looks like up from here….TD has $5.50 target the following is excerpt from analyst report ...Inflation Reduction Act Readthroughs: If signed into law, the Inflation Reduction Act includes a significant production tax credit for green hydrogen between $0.60/ kg and $3.00/kg, depending on the carbon intensity. Electrolyzer technology with renewable energy feedstock (aka 'green' hydrogen) produces the lowest carbon intensity hydrogen and qualifies for the high end of this range. This completely alters the longer-term outlook for Next Hydrogen in our view. Consider the following:
Next Hydrogen is the only North American pure-play electrolyzer manufacturer and has signed a MOU with the New York State Energy Research and Development Authority to develop one of the four regional clean hydrogen hubs designated by the US federal Clean Hydrogen Hubs program.
We believe that the $3.00/kg production tax credit largely closes the gap between 'green' and 'grey' hydrogen production costs. Details on page 2.
The current market capitalization of $38.0 million provides the opportunity for outsized returns in our view, particularly in the context of its $30.1 million net cash balance. Said differently, only ~$8.0 million of intrinsic value is contemplated in its current valuation beyond its cash balance. Compare this with its European peers that feature enterprise values between $0.4 billion and $2.5 billion that admittedly generate more revenue but are expected to generate negative cash flow for the foreseeable future. Details on page 5.
The company will deliver a demonstration unit to Canadian Tire in the near term and has an ongoing project with Hyundai/Kia that may prove to be a positive