Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) has been highlighted as a “de-risked” player in the green hydrogen market after announcing a cost-cutting plan in half-year results last month.
UBS analysts said in a note this showed Ceres was over its peak investment in the likes of research and meant further fundraising to develop its hydrogen fuel cells was not needed.
Ceres had reported in September that adjusted pre-tax losses fell from £23.5 million to £9.0 million over the first half of the year.
This came as revenue more than doubled to £28.5 million on the back of new partnerships with Delta Electronics, Denso Corporation and Thermax, which saw order intake hit a record.
“We believe Ceres can win more partnerships,” UBS noted, adding the firm had become a “de-risked enabler of green hydrogen”.
This includes as ongoing efforts toward electrification place strain on power grids, analysts said, taking the total addressable market for green hydrogen above US$1 trillion (£0.75 trillion) by 2030.
‘Buy’ was the rating from UBS, which also hiked Ceres’ share price target from 450p to 480p, marking a prospective rise of 70% from Monday’s close.