Hexagon Purus (Buy, TP: NOK11.00) - Hit by delayed ramp-up and market headwinds
While we still view the long-term Hexagon Purus story as promising, we see delays to growth in 2024 (from a slower capacity ramp-up) and activity (from a sluggish hydrogen mobility market) that together with limited growth investments beyond 2025e has led us to lower our 2030 growth forecast. As a result, we have cut our target price to NOK11 (13), but reiterate our BUY. With a differentiated product offering that is more resilient to the soft green hydrogen market than its hydrogen equipment peers, we consider the ~50% discount to them on 2024–2026e EV/sales unwarranted.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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