With the increasing focus of governments worldwide on decarbonization, the hydrogen industry is expected to achieve solid growth in the near term. Nevertheless, we think it could be wise to avoid Hydrogen stocks, Bloom Energy (NYSE:BE), Ballard Power (BLDP), and FuelCell Energy (FCEL). Wall Street analysts believe the shares of these companies are overvalued. Let’s discuss.Considering the increasing speed of global climate change, and rising oil prices, governments worldwide have been formulating strict policy measures to transition their nations’ economies to a green-energy-based, sustainable future. In addition, the hydrogen market is expected to gain traction due to increasing demand for energy from the reopening industrial sector. According to an Emergen Research report, the global green hydrogen market is expected to grow at a 14.1% CAGR between 2021 - 2028.
However, hydrogen infrastructure requires significant initial investment and has high maintenance costs. Furthermore, a disrupted supply chain, logistical difficulties, and reduced workforce availability are also hampering the hydrogen market’s growth.
Given this backdrop, Wall Street analysts believe Bloom Energy Corporation (BE), Ballard Power Systems Inc . (NASDAQ:BLDP), and FuelCell Energy, Inc. (FCEL) are unsafe investment bets at their current price levels. So, we think it could be wise to avoid these stocks now.