Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares jumped on Wednesday after UBS almost tripled its share price target, citing accelerating demand for the company’s solid oxide fuel cell (SOFC) technology and an improving financial outlook.
The target was lifted to 350p from 120p and a 'buy' rating, with shares in the company rising 16% on the day to 306p, up around 300% since Bosch pulled out of its partnership in February.
UBS said the Ceres fuel cell tech "has a stronger adoption outlook after significant data centre orders".
The Swiss bank now models EBITDA breakeven in 2026, a year earlier than previously forecast, following operational cost cuts and scaling royalties from partner Doosan, which begins mass production this year.
The bank sees the 2030 SOFC market reaching £50 billion, with Ceres potentially capturing 10% of the growing data centre segment providing "upside risk to royalties".
Following Bosch’s exit from its 17% stake last month, UBS said the removal of the share overhang and lower risk profile justify a reduced cost of capital, contributing to the higher target price.
It also highlighted lower capital intensity and cash burn, with Ceres expected to hold a £50 million cash buffer in 2026 before turning cash-flow positive in 2027.