Ceres Power’s first half results beat revenue estimates and showed improved year-on-year gross profit performance, says broker Liberum
Confirmation that Doosan’s 50MW factory in South Korea is on target to commence production of fuel cells under a Ceres technology licence in the second half of 2024 is also encouraging, it said.
Ceres electrolysis business, which it said is likely to be larger than the fuel cell business, is also developing rapidly while the company reiterated its expectation that the China JVs with Weichai/Bosch will be officially confirmed in 2024.
“Gross margins should lift materially into the next financial year driven by a greater share of licence fee revenue.”
Buy with an 800p target is the broker’s view.