London broker finnCap has reiterated its bullish price target for green hydrogen, ammonia and fertiliser company ATOME Energy PLC (AIM:ATOM), despite making near-term adjustments to its earnings forecast.
According to finnCap: “ATOME’s recent full-year results reflected the increased levels of activity and fast-track development occurring throughout its project portfolio.”
finnCap noted that ATOME’s earnings losses of US$5.9mln (£4.7mln) outstripped the broker’s US$3.2mln forecast, though from a cash perspective, the results were in line.
The broker adjusted its full-year 2023 earnings estimates to include US$1.1mln in share-based payments and US$3.5mln in project costs, thus widening underlying losses from US$3.2mln to US$8mln.
However, ATOME’s cash balance should remain at a healthy US$3.3mln.
finnCap believes the company “remains well-funded to continue to progress its flagship Villeta green fertiliser project to FID”, which is still expected in the fourth quarter of 2023, and deliver its first production in 2025.
A Final Investment Decision (FID) refers to the point in time when a company or investor commits to a particular investment project or opportunity. It is a significant milestone in the investment process, indicating that the project is considered financially viable and is approved for implementation.
finnCap gives ATOME a price target of 279p, representing a 174% upside against today’s market price of 101.75p.