Shares in Ceres Power fell 3% on Wednesday after the fuel cell developer's half-year results came in without major surprises and the company said it remained confident of signing a new manufacturing partner before the year is out.
Jefferies, which reiterated a "buy" rating and a 920p price target on the group, said that pledge would be the key focus of a results call with management.
The broker's target implies more than double the current share price, which stands at 421p.
Ceres, which licenses its solid oxide fuel cell technology to partners including Bosch, Weichai and Doosan rather than manufacturing itself, reported first-half revenue up 8% to £22.8 million.
That reflected licensing income from China's Weichai, as expected.
Analysts Constantin Hesse and Martin Comtesse flagged that consensus forecasts had appeared to bake in an additional manufacturing deal, despite it being known that none was signed in the first half.
As a result, they cautioned that the shares could open volatile on potential misinterpretation of the figures against expectations.
Operating costs improved significantly, down 14%, following a cost-cutting programme and continued discipline.
The company ended the period with net cash and short-term investments of £172 million, boosted by an oversubscribed £102 million share placing in June.
Ceres confirmed its full-year guidance of around £45 million in revenue, in line with Jefferies' estimate, though this excludes any additional manufacturing agreements.
The broker described the print as solid on cash, with the call likely to set the tone for the shares.
Ceres has positioned its asset-light, licensing-based model as a way to address demand from transport, industry, data centres and everyday power without the capital burden of building factories itself.
Jefferies values the company using a discounted cash flow model, and flagged risks including policy support, the pace of customer adoption and slow order conversion.
