Metacon

Ahead of Metacon's Q3 report on November 4, we have lowered our estimates for the coming years, as the company has still not announced any new large-scale orders and the order backlog continues to draw down through execution.

New 20 MW module design cuts infrastructure costs by up to 70% to improve hydrogen plant competitiveness.

Given that the share price has fallen by roughly 35% since our last update, we believe the risk/reward has become more favorable, with the company now trading in the lower end of our fair value range.

In our view, this is a logical and necessary step to reduce cash burn and extend the company's financial runway.

While Metacon delivered continued backlog execution in its Q2 report, the main takeaways in our view were the weak order intake and management's commentary on the slow market development.

We expect Metacon's Q2 report to show continued strong growth, while we anticipate earnings will remain negative due to the ongoing commercial scale-up.