Up 50% in 2 weeks, this ASX hydrogen share is still a buy: expert

This hydrogen company has had plenty of news lately.

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Key points

  • This ASX hydrogen share has soared 50% in two weeks 
  • One analyst is recommending the share as a buy
  • Today, the company's share price is in a trading halt 

This ASX hydrogen share has soared ahead in recent times, but could it go even higher?

The ReNu Energy Ltd (ASX: RNE) share price has soared 50% since 7 November and is currently trading at 6 cents.

Let's take a look at the outlook for this ASX hydrogen share.

What's ahead?

ReNu Energy shares have been lifting in the past couple of weeks amid hydrogen project news.

On 9 November, ReNu advised that superannuation fund HESTA had agreed to a non-binding term sheet to invest up to $100 million in the company's green hydrogen projects.

Commenting on the deal, ReNu CEO Greg Watson said:

Our task now is to advance to definitive agreements as soon as possible and progress commercial discussions with our project partners for green hydrogen offtake.

Meanwhile, on 17 November, ReNu advised it had signed a memorandum of understanding (MOU) with Australian Pacific Airports to develop a green hydrogen project at Launceston Airport.

Peak Asset Management executive director Niv Dagan recommends the ReNu Energy share price as a buy. Commenting on The Bull, Dagan said:

The company invests in renewable and clean energy technologies. Also, it identifies and develops hydrogen projects. RNE acquired Countrywide Hydrogen in February 2022.

The company continues to progress its hydrogen projects.

Trading halt

ReNu Energy shares are in a trading halt today at the company's request. The company's share price is on ice ahead of a capital raising. In a statement, ReNu Energy said:

The company requests that the trading halt remain in place until the commencement of
trading on Wednesday, 23 November 2022 unless before that time it makes an
announcement in relation to the Capital Raising to the market or requests that the trading
halt be lifted.

Share price snapshot

The ReNu Energy share price has descended 57% in the past year, while it has lost 26% year to date.

For perspective, the ASX 200 has fallen more than 3% in the last year.

This ASX hydrogen share has a market capitalisation of nearly $22 million based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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