Clean Power Hydrogen PLC (AIM:CPH2) has been recommended as a 'buy' by Liberum as a "compelling investment opportunity" for investors due to the valuations in the sector.
This has resulted from the challenging equity market environment for pre-revenue growth companies and short-term, now "largely resolved", technology issues, the broker said.
Its patented Membrane-Free Electrolyser (MFE) hydrogen production technology "has the potential to disrupt incumbent alkaline and PEM competitors via its low cost, high efficiency and long duration alternative", said analyst Sam Wahab.
First commercial shipments of its MFE220 product are expected this year.
At its results in April the company said it had five MFE220 electrolyser orders, with combined sales value of £6.5mln, and flagged three license agreements.
Initiating coverage of the share, Liberum's target price is 84p, versus a price at publication of the note on Tuesday of 27.3p.