Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares fell 10% to 64.15p on Friday after its final results - a cue for Panmure Liberum to slash its price target from 700p to 150p.
Even so, the broker is sticking with its ‘buy’ rating, arguing that the sell-off—largely triggered by Bosch walking away from its partnership—is overdone.
While the Bosch exit was a blow, Panmure points out that the financial impact is minor and Ceres is no longer overly reliant on one partner.
The company's solid oxide fuel cell technology remains in demand, with three new licences signed in the past year, including a major deal with Delta Electronics in Taiwan and another with India’s Thermax.
Results for 2024 were actually a touch ahead of expectations, with revenues doubling to £51.9m and losses narrowing sharply.
Gross margins jumped to 77%, helped by high-value licensing deals. Ceres also ended the year with £102.5m in cash, enough to keep funding its growth without tapping investors again.
Panmure says the company is now at a key turning point: Past its heaviest spending phase and poised to benefit from growing partner production.
While more cautious long-term royalty assumptions prompted the price target cut, the analysts still see “significant upside risk” if new deals land.