AFC Energy PLC (AIM:AFC, OTC:AFGYF)’s recently announced joint venture with Speedy Hire PLC (LSE:SDY) has the potential to lead to improved full-year financial results in 2024, reckon Peel Hunt analysts.
Called Speedy Hydrogen Solutions, the 50-50 joint venture will purchase £2 million worth of 30-kilowatt fuel cell generators from AFC to be delivered through the first six months of 2024, with the intention to increase orders up to £4.7 million across the first full contract year.
Speedy Hire has confirmed strong interest from its customers for emission-free fuel cell generators as a replacement for diesel generators, establishing “a growing pipeline of demand”, analysts contended.
Peel Hunt said it will review its AFC targets in due course while maintaining a buy rating and a 125p target price in the meantime.
AFC shares were swapping for just 14.79p at the time of writing.