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Investing.com -- Shares of Mcphy Energy (EPA:ALMCP) plummeted by 22.8% following the company’s announcement of entering a conciliation procedure to seek a new partner.
This move comes as McPhy aims to bolster its financial prospects, with its cash runway extending to the end of June 2025. The company has also received preliminary interest from a European industrial entity, though any potential deal will be subject to scrutiny with offers due by May 9, 2025.
The stock’s sharp decline reflects investor concerns stemming from recent events, including the unexpected resignation of CEO Jean Baptiste Lucas last week.
The company’s downgrade to Underperform by RBC analysts last week was influenced by the limited prospects for the French electrolyser manufacturer and the growing uncertainty around its funding throughout the year.
Analysts have pointed out that while McPhy has operational attractions that may interest partners, its financial options remain constrained.
RBC analysts on Monday expressed concerns about the company’s future, stating, "Last week’s top management change adds another layer of risk to McPhy’s investment case, and we expect growing uncertainty to limit financial recovery options in the near term."
"On our updated numbers and valuation multiple we arrive at a valuation per share of €0.3, which supports our Underperform, Speculative Risk recommendation," they added.