ITM Power is about to be a £1bn company!
13th May 2020 |
Late last year my colleague James Allen told you about a big opportunity in the hydrogen market. I hope you took his lead because the stock – ITM Power – is on an absolute tear right now.
Below James gives you a quick update on the stock’s latest price movement.
Over to you, James…
Eoin Treacy
Editor, Frontier Tech Investor
The relentless march of ITM Power, our UK-listed electrolyser manufacturer, continues.
Earlier today it broke through 200p, putting its market cap just shy of £1 billion. It’s now doubled since falling below 100p in mid-March!
It’s hard to pinpoint exactly what is behind the most recent surge. Of course, ITM is probably the flagship stock of the UK’s emerging hydrogen economy so any general news in the space – and there is plenty – will naturally result in some purchases.
But, more specifically, ITM Power was added to the MSCI Global Small Cap Index in its May review (with all changes to take place as of the close of 29 May). This will inevitably stimulate some buying from some of the funds, trackers and ETFs that use the index as a benchmark.
What’s more, it wouldn’t surprise me if ITM has been the subject of fluttering eyes from the boardrooms of some real heavy lifters that want to enter the electrolyser space before it’s too late.
It was certainly interesting to read last week that US fuel cell company Plug Power was “pursuing the acquisition of an electrolyzer company”. ITM Power certainly fits the bill, though it would be an expensive acquisition for Plug Power to make. Their market caps are now comparable, after all.
Mark this down in a pot marked “speculation” but it certainly wouldn’t surprise me if a Big Oil behemoth – a BP, for example – wanted to get a piece of the action and really help its low carbon transition away from the increasingly moribund oil markets.
ITM Power is a buy up to 175p.
Until next time,
James Allen
Editor, Exponential Energy Fortunes
