The broker says that the current share price implies the solid oxide fuel cell specialist Ceres will achieve sales of £400mln by the end of 2035.
On its estimates, Berenberg suggests this significantly underestimates the opportunity and its new bottom-up supply-side modelling points to revenues of £750mln-1,200mln by 2035 just from fuel cells alone.
Add in electrolysis (revenues of between £150-20mln) and Berenberg says tit can envisage more than 200% upside to the current share price.
The share price has dipped 35% from its highs but with the backdrop of government policies, corporate investment, the geopolitical backdrop, hydrogen technology and renewable energy costs a growing climate crisis all supporting the use of hydrogen, Ceres is a conviction buy says Berenberg, which has a 1,560p price target.
Shares rose 6% to 1,196p.