UBS has struck a more optimistic tone on Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) following a roadshow with CFO Stuart Paynter, highlighting strengthening licence momentum, expanding access to the US market and improving cost competitiveness for its solid oxide fuel cell (SOFC) technology.
The broker, which has repeated a 'Buy' rating and a 570p price target, sees material upside if Ceres’ partners scale to multiple gigawatts in the coming years.
Analyst Christopher Leonard said confidence has increased around four key pillars: faster licence signings, a clearer path into the buoyant US power market, partner-led ambitions to reduce system costs, and strong intellectual-property safeguards within the company’s new Weichai agreement.
UBS also reiterated management’s view that Ceres can reach EBITDA and cash breakeven in 2026, contingent on landing one more licence partner.