Quadrise PLC (AIM:QED) has never had a stronger business case, that’s according to analysts at house broker Shore Capital.
And, notwithstanding a near 200% rise over the past year, Quadrise shares still present an opportunity for “considerable upside potential for investors”, the stockbroker said in a note.
It follows the release of the company's interim results statement, which underlined to investors the multiple value catalysts that are just on the horizon for the alternative fuel firm.
Attention remains focussed primarily on a pair of separate commercial trails – one in marine shipping, with MSC and Cargill; and another at a power project in Panama.
These hotly anticipated pilots are due to officially get underway before the June financial year-end.
“A positive outlook has been maintained with management referencing the expectation for the IMO to mandate lower greenhouse gas intensity fuels and to introduce a global maritime emissions pricing mechanism to achieve net-zero by 2050,” analyst Tom Fraine said in a note.
“The minimal investment required by shipping companies to adopt Quadrise’s drop-in fuel solutions to decarbonise their operations supports the company’s position to benefit.
“We note that Quadrise’s fuels extend asset life cycles, whilst reducing costs and emissions.”
Fraine added that the broker shares management’s confidence that the business case for Quadrise’s fuels has never been stronger.
“We are delighted to see the progress the company has made in recent months,” the analyst said.
“Although this has been partly reflected in the share price, we continue to see considerable upside potential for investors.”