PowerHouse Energy Group Plc (LON:PHE) shares could be worth 324% more than its market price, according to Align Research, which on Thursday issued a ‘conviction buy’ recommendation for the specialist power group.
Align Research analyst Richard Gill, in a note, gives PowerHouse a net present value of £52.75mln which equates to 4.24p per share – compared to the present price of just over 1p on London’s AIM market.
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“PowerHouse is now at the point where its G3-UHt Ultra High Temperature Gasification Waste-to-Hydrogen system is on the cusp of commercialisation, with the key opportunity and focus being on producing hydrogen for use in road fuel and stationary hydrogen fuel cells,” Gill said.
He added: “The G3-UHt system has the potential to reduce the cost per mile of a hydrogen car significantly lower than a petrol or electric car with a zero, arguably negative, carbon footprint.
“This puts the company in an excellent position to take advantage of growth in the FCV (fuel cell vehicle) market.”