Its full-steam ahead for ITM Power plc (LON:ITM) after the hydrogen fuel specialist raised £5.7mln in funds in January, says Align Research.
The firm placed 33.7mln shares at 17p a pop, and to reflect the dilution caused by the share issue Align has watered down its price target from 43.8p to 37.9p.
With the shares trading at 17.75p, that still leaves 146% of share price accumulation if Align’s valuation is on the money.
The research house said that since it started coverage of the renewable energy specialist in August, ITM has “made good operational progress in its two divisions, with the wider hydrogen energy industry continuing to attract investment from governments and industry across its target markets”.
With a market capitalisation of just over £44mln, Align argues that the company is being valued at less than two-fifths of the money it has invested in developing and growing its intellectual property.
Align is predicting a sharp reduction in pre-tax losses in the current financial year, which runs to the end of April.
It has pencilled in a loss of £2.81mln, versus a loss of £4.36mln the previous year.
Total income – which includes grants - is tipped to break through the £10mln barrier to £10.9mln from £8.2mln last year.