Hazer Group (ASX:HZR) partnership with Kellogg Brown and Root "materially" improves the company's credibility, execution pathway, as well as future earnings visibility, said Euroz Hartleys in a Monday note.
According to a Monday filing, the company entered into a binding alliance agreement with US-listed Kellogg Brown and Root for the commercial deployment and licensing of its proprietary methane pyrolysis technology.
The research firm noted that the company has a significant market opportunity with ammonia and methanol representing over 50% of current global hydrogen demand, worth about $120 billion.
The agreement is a "major commercial milestone" as it validates the company's technology and accelerates its path to market through KBR's global footprint, the note added.
Euroz Hartleys raised Hazer Group's price target to AU$0.74 from AU$0.64 while maintaining a speculative buy rating.
The company's shares rose 7% in recent Tuesday trade.
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