Investment bank Liberum was bullish on the prospects for AFC Energy PLC (AIM:AFC, OTC:AFGYF) in the wake of an 'important milestone' for the hydrogen power pioneer.
Earlier investors were told AFC had completed the factory acceptance test (FAT) of its first 'state-of-the-art' 30kW H-Power generator.
This development marks a significant step forward in the company's collaboration with Speedy Hire, the tools and equipment hire service.
The 30kW generator, the first of its kind, met all the required contractual tests and criteria during the FAT, aligning with the agreements established with Speedy.
Liberum in a note to clients said: "[This is] an important milestone for AFC as the company progresses its roadmap towards commercialisation of its hydrogen power generator.
"While the company will seek more opportunities to deploy through rentals, the significant inflexion point in revenues is expected to come from outright sales of its fuel cell systems to plant hire companies who would then rent them out to construction companies in line with their conventional equipment rental business model. In this context, the collaboration with Speedy Hire is consistent with AFC’s strategy for the UK construction industry."
The boutique investment bank repeated its 85p a share price target and 'buy' recommendation.