This global stock could rally 140% on a hydrogen fuel boom, analyst says

Posted By: EN Todayon: May 12, 2024In: Alternative Energy News

Wolftank Group , an Austria-based company specializing in tank facilities and refueling technologies, could see its stock price soar by as much as 140% over the next 12 months, according to investment bank Metzler. The bank believes as Europe invests heavily in hydrogen infrastructure, with public investment budgets ranging from millions to the billions across various countries, the Germany-listed company is well-positioned to capture a slice of this growing market. Metzler’s analysts have a price target of 23 euros ($24.80) for Wolftank, which means the stock could more than double from the current share price of around 9.40 euros. WAH-FF 1Y line The number of hydrogen refueling stations, a key focus for Wolftank, has risen by more than 600% to 178 across Europe over the past decade. Wolftank’s business model assumes buses, industrial trucks, and trains will likely use hydrogen in the future, rather than mass-market cars, which are now primarily transitioning toward electric power. The company expects revenues from ongoing hydrogen projects to exceed 16 million euros in 2024, with projected figures for 2025 of around 18 million euros. Additionally, projects currently in the tendering process could add over 80 million euros in revenue for 2025 and beyond if the company is successful, according to Metzler. “The company is seeing a great deal of customer interest in its hydrogen refuelling solutions,” said Metzler analyst Guido Hoymann. “In the medium term, there are also major growth opportunities for Wolftank in the areas of environmental and industrial coatings, which should benefit from the fact that conventional tanks and refuelling stations are largely obsolete, leading to an increased need for maintenance, repair, refurbishment and ultimately dismantling.” The company recently secured several significant contracts in Italy. Late last year, Wolftank was awarded a major hydrogen refueling station contract with a public transport provider near Lake Iseo in northern Italy. The company also secured a significant order from the Italian public transport company TPER to refuel hydrogen buses in the Emilia Romagna region worth 30 million euros until 2026. Last week, the company also revealed that it was awarded two further contracts totaling 6.7 million euros. “Wolftank continues to keep up the pace and shows with the latest order acquisition that pilot projects can be successfully transferred into follow-up orders,” said research analysts Patrick Speck and Miguel Lago Mascato at another broker, Montega, according to a CNBC translation. They added that it “underlines the attractiveness of the equity story.” The consensus price target of four analysts polled by FactSet points to a 124% upside for the stock. — CNBC’s Sophie Kiderlin contributed reporting.