The more than 40% drop in Ceres Power Holdings PLC's (LSE:CWR, OTC:CPWHF) share price may be a little knee-jerk if the decision by Robert Bosch to exit the partnership agreement with the UK fuel cells group is a one-off.
That's Citi's take on the news German engineering giant has given its notice and will sell its stake in Ceres.
"If Bosch's decision is isolated, the share price reaction looks overdone, but we think it will take new partner wins and/or statements of market confidence from existing partners to drive any near-term re-rating," the American investment bank said in a note.
RBC, meanwhile, has lowered its price target to 110p from 180p before the news.
It said: "Despite significant upside to the current share price, we maintain our 'sector perform' rating as this announcement could continue to weigh on sentiment and create uncertainty around commercial momentum."
In early trading, the stock was up 1% at 81.32p.