Shares in ITM Power PLC (AIM:ITM) jumped 7% after the group inked a deal to increase the power supply to its base at Bessemer Park, Sheffield.
“This additional power supply will enable ITM Power to significantly increase product testing aligned with the company's growth ambitions,” said Peel Hunt in a note to clients.
The broker repeated its ‘buy’ recommendation and 200p price target, a significant premium to the current price of 86.28p (up 5.78p).
“We view today's announcement as a positive move, demonstrating early signs of execution of the methodical turn-around plan outlined by ITM Power's CEO Dennis Schulz at the end of January,” said Peel Hunt. “Testing capability was previously a bottleneck in delivery capability.”
ITM Power is a clean fuel company that produces green hydrogen using renewable electricity and tap water through the use of electrolysers.
It was founded in 2001 and became the first hydrogen company to be publicly listed on the London Stock Exchange in 2004.
The company is headquartered in Sheffield and operates from three sites in Sheffield and an office in Germany.