ITM Power: Government Funding and Analyst Optimism Can't Halt the Sector-Wide Slide
Published on 07/24/2026 at 03:02 | Redaktion boerse-global.de
ITM Power's stock dropped 4.3% to €1.27 on Thursday, dragged down by a broader sell-off in the hydrogen sector rather than any company-specific bad news. The decline came despite fresh government funding, insider purchases, and a bullish analyst upgrade — a disconnect that underscores just how tightly the market now ties the fortunes of electrolyzer makers together.
The trigger came from Norway. Nel ASA, a rival hydrogen firm, reported falling revenues and widening losses in mid-July, sending its own shares into a tailspin. Analysts quickly began questioning growth assumptions across the entire clean hydrogen space, and ITM Power was caught in the downdraft. The British company has been making operational progress, but that mattered little on a day when sentiment toward the whole sector soured.
Thursday's move extended a slide that has now erased more than half of ITM Power's value since its 52-week high of €2.58 on May 29. The stock currently sits 50.8% below that peak, though it remains up a remarkable 75.4% year-to-date — a reminder of just how volatile the green energy space has been in 2026.
The technical picture reflects the recent cooling. The relative strength index stands at 41.7, signaling waning buying momentum without tipping into oversold territory. The stock is trading 15.9% above its 200-day moving average of €1.09 but well below the 50-day average of €1.61, suggesting a consolidation phase rather than a full-blown breakdown.
Should investors sell immediately? Or is it worth buying ITM Power?
Government Cash and Insider Confidence
Behind the market noise, ITM Power has been quietly strengthening its financial position. On July 9, the company secured a £46.5 million grant from the UK's Department for Energy Security and Net Zero, part of a larger £86.5 million funding package that includes a £40 million equity investment from Great British Energy. The money will fund an automated production line for the new Chronos electrolyzer stack at the company's Sheffield facility.
The Chronos platform is central to ITM Power's turnaround story. Management says the new stack will improve energy efficiency by 10% and cut costs by 40% compared to the previous generation. The goal is to reach an annual production capacity of 1 gigawatt at the Sheffield site.
Management is putting its own money where its mouth is. CEO Dennis Schulz and CTO Simon Bourne each bought 134 shares on July 15 through the company's "Buy as You Earn" employee share plan, at roughly £1.12 per share. ITM Power matched the purchases under the program's terms. Insider buying is often read as a vote of confidence, even if it rarely moves the needle on a stock's daily price.
Berenberg Sees a Path to £2.38
Analyst opinion stands in stark contrast to the market's current mood. Berenberg recently lifted its price target for ITM Power to 200 pence (approximately €2.38), maintaining a "Buy" rating. The upgrade was driven largely by the company's partnership with German defense contractor Rheinmetall on the "Giga PtX" project, which focuses on decentralized fuel production for critical applications. Berenberg sees potential for up to 1,500 installations across Europe.
That kind of long-term optimism has yet to filter through to the share price. The gap between Berenberg's target and the current market value of roughly €1.27 is wide — around 87% upside from Thursday's close.
ITM Power at a turning point? This analysis reveals what investors need to know now.
The August Test
The real proving ground comes next month. ITM Power is due to report full-year results for the period ending April 30, 2026. Management has guided for revenue between £35 million and £40 million. Investors will be watching closely to see whether the "Hydropulse" operating model and the Chronos rollout are actually narrowing losses.
For now, the stock is caught between two forces: a sector-wide reassessment that is punishing all electrolyzer makers alike, and a company-specific story of government backing, insider confidence, and analyst conviction. The August numbers will determine which narrative wins out.
Ad
ITM Power Stock: New Analysis - 24 July
Fresh ITM Power information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
