Roth Says Hydrogenics (HYGS) Remains Key Player in PEM Electrolysis Segment; Affirms at 'Buy'

Roth Capital affirms Hydrogenics (Nasdaq: HYGS) at Buy with a price target of $13 after the firm attended the California Hydrogen Business Council's (CHBC) Fuel Cell Summit in Sacramento, Cali, recently.

Analyst Craig Irwin sees Hydrogenics as one of the best-positioned competitors in the PEM electrolysis markets. The analyst noted the following:

• Meetings with several established and emerging PEM electrolysis competitors affirm our view the market is seeing robust pre-award activity. We attended the CHBC Fuel Cell Summit in Sacramento, CA where several Hydrogenics competitors were eager to share their progress pursuing a very active slate of anticipated project awards. While management from various companies were all eager to share their anticipated bookings, trailing awards have been slow, supporting our view Hydrogenics has at least been maintaining share.
• We are most optimistic about the KOLON project for Hydrogenics, where industry consensus is this project is nearing an award. Mgmt recently announced they leased an additional facility near the corporate headquarters, essentially doubling company space, which we interpret as confidence that there should be a 2H16 booking. It does not appear that other companies have a dialogue with KOLON, so we see this as a high confidence Hydrogenics award.
• The KURION project remains an attractive opportunity, where we should see movement towards an award by the end of 2016. There is an active RFQ now ongoing with KURION where Hydrogencs' position as the incumbent supplier likely lifts its prospects, and we were not surprised to hear the scope and timeline of the project continues to evolve.

For an analyst ratings summary and ratings history on Hydrogenics click here. For more ratings news on Hydrogenics click here.

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