Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) had its 'buy' rating reiterated by Citi after its results last week.
Analysts at the investment bank updated their model post-results, saying the "technology progress looks encouraging".
What's more, it added that the "regulatory backdrop is improving," with the EU this month naming fuel cells as a strategic technology.
Results showed group revenue contained £7.7mln of licencing fees, £9.0mln for engineering services and £5.4mln of prototyping hardware, with gross profit of £13.1mln and an operating loss of £51.5mln as headcount grew to 570 from 489 and the company significantly ramped-up in activity in development of its electrolyser technology on top of work on its solid oxide fuel cells.
With Ceres having agreed the structure of its China joint ventures and now awaiting the final agreement between Bosch and Weichai, the Citi team added that they think the revenue ramp-up for the AIM-listed group and breakeven at the EBIT level will "shift to the right" to reflect contract timing.
Also updating the latest currency forecasts into its model, Citi trimmed its target price to 680p, which compares to a last close price of around 320p.