Materials

Report by Alembic Global Advisors

Recent underperformance and valuation multiple compression vs. peers is overdone - APD has underperformed Air Liquide and Linde by 23% and 81% since hitting March 2020 lows. However, Hassan Ahmed’s analysis shows APD’s margins are turning a corner; it has the most attractive geographic exposure in the current global macro environment amongst the industrial gas majors (US & Asia > Europe); and its higher exposure to the hydrogen economy is not fully appreciated. Last, but not least, the company has a slew of growth projects coming online over the next five years which should add $36+ per share to valuation. 12-month TP $305 (30% upside).

Consumer Discretionary

Report by Entext

Chinese clean energy space looks attractive after the recent selloff - BYD is one of Sean Maher’s long-time preferred electrification plays and he is increasingly confident that by mid-late decade it will be worth significantly more than Tesla. BYD set another record month for sales in May and its all-new Seal model offers another revolutionary innovation - a CTB (cell-to-body) structural battery system. The share price is up 80% since Sean added BYD back into his Energy Transition basket (+240% since initiation); constituents added in the last 6 months include Air Liquide, Linde, LG Chem and SK Innovation.

Report by Stockcube

The Euro Stoxx 600 encounters medium term resistance at 440/450 with Stockcube anticipating a period of range trading - their Model Portfolio currently has 40 longs (avg. gain 9.3%) and 23 shorts (avg. gain 4%). Within sectors, they highlight Healthcare making new short term highs; Media testing short term resistance while breaking relative range resistance; Energy reasserting uptrends; Industrial reasserting short term downtrends and Technology reasserting downtrends. They recently opened a long in Air Liquide (makes new highs) and shorts in Saint Gobain (reasserts tops), Deutsche Bank (reasserts short term downtrends) and Vonovia (makes new lows).

Plug Power and Ballard Power Systems to benefit the most from The Infrastructure Investment and Jobs Act commitment to hydrogen. PLUG was cited for its industry leadership, strong management, innovation and how its recent acquisitions have expanded its offering across the hydrogen economy. BLDP is well-funded and considered the “big dog” in transportation. Other companies highlighted in Blueshift’s 31-page report include Air Liquide, Anglo American, Caterpillar, Cummins, Hyundai, ITM and Linde. Traditional oil & gas companies will also have a role to play, while Hyzon Motors and Nikola could be M&A targets.