Crisis will eventually lead to opportunity for hydrogen stocks.
Unfortunately, at the moment, the industry is still waiting to see if the Biden administration will lift the restrictive rules behind 45V.
And while many are losing patience over the fix, 13 U.S. senators just sent a letter to Treasury Secretary Janet Yellen to revise 45V rules or risk having them challenged in court. “Unless revised according to the suggestions below, the proposed guidance will undermine our shared goal of creating an enduring domestic clean hydrogen industry capable of significantly reducing economy-wide carbon emissions,” wrote the senators.
Remember, if loosened, the Biden administration could get one step closer to cutting emissions, as hoped. Remember, hydrogen — which only produces water vapor and warm air — is key to helping the U.S. achieve its net-zero emission goals.
While we wait to see what happens, some CEOs, like Plug Power’s (NASDAQ:PLUG) Andy Marsh, are confident the rules will be relaxed. And if that’s the case, investors should start accumulating hydrogen stocks today to get a jump on a future rush.
Bloom Energy (BE)
The last time I mentioned Bloom Energy (NYSE:BE), I said, “Investors should use the latest pullback in BE shares as a buying opportunity.”
That was on June 27, as Bloom Energy traded at about $13. Today, it’s up to $15.28 and is still one of the top hydrogen stocks to buy and hold.
Helping, the company will deploy its fuel cells to generate on-site power for a high-performance artificial intelligence data center with CoreWeave.
As noted in the press release, “The modern data center will allow for high-density deployments with advanced cooling systems, allowing CoreWeave to offer performant and efficient cloud solutions for AI.”
Analysts at RBC Capital also reiterated an Outperform rating on the stock. The firm highlighted the potential for Bloom’s fuel cell technology to meet the increasing energy demands of data center customers. Analysts at BTIG also reiterated a Buy rating on the stock with a price target of $21.
Linde (LIN)
On May 20, I mentioned Linde (NASDAQ:LIN), noting that at $432.42, it was a bargain.
At the time, LIN had fallen on earnings. Nowadays, it’s up to $449.29, where it’s still a strong buy. From here, I’d like to see LIN initially retest prior resistance at $476.18. Plus, while we wait for that to happen, we can collect its current yield of about 1.24%.
Helping, analysts at Citi (NYSE:C) just boosted their price target on Linde to $480 and Mizuho (NYSE:MFG) raised its price target on LIN to $512, with a Buy rating.
In addition, as noted by InvestorPlace contributor Terel Miles, “Linde’s established presence and technological capabilities will drive approximately 8-10% EPS growth in FY24. This makes LIN stock one of the top renewable energy stocks to snap up before the next leg higher.”
Air Products and Chemicals (APD)
I also said weakness was an opportunity in Air Products and Chemicals (NYSE:APD) on July 3. At the time, APD traded at $253. Today, it’s up to $270.47 and is still a buy.
Fueling momentum, APD just signed a 15-year agreement to deliver about 70,000 tons a year of green hydrogen to Total Energies’ European refineries beginning in 2030.
Plus, Morgan Stanley (NYSE:MS) just raised its price target on APD to $280 with an Equal Weight rating. BMO Capital raised its target to $276 from $263 with an Outperform rating. Even Citi just raised its price target on Air Products to $305 from $280, with a Buy rating.
Better, while we wait for the stock to appreciate, we can collect its current yield of 2.62%. I’m also looking for the APD stock to push higher as the company nears its earnings release on August 1 before the opening bell.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
