Ceres Power Holdings PLC's (AIM:CWR, OTC:CPWHF) trading statement on Thursday was notable for an update on the joint venture with China's Weichai, which was said to be “progressing positively” with management “looking forward” to updating the market as soon possible.
Analysts at house broker Berenberg said: "We are therefore optimistic of receiving an update in the near term, something that we expect to be taken well by the market."
They said it was a "solid" year-end update, with numbers a touch ahead of its estimates, alongside supportive comments on the formation of the Weichai JV and commercial opportunities for the electrolysis business.
"Hence, while we are cognisant of the rising interest rate environment, we think it is an opportune time to revisit the story, with several upcoming catalysts likely."
Broker Liberum also noted that the statement "attempts to reassure that the Weichai JV, which originally envisaged producing fuel cell powertrains for hybrid commercial vehicles remains on track for consummation with discussions 'progressing positively' though no timing provided or further details.
"When it happens we expect the scope of the partnership to include stationary engines with possibly a different shaped plan in vehicles than hitherto."
Liberum reiterated its 'buy' rating on Ceres, seeing a DCF fair value of over £14 per share, consisting of circa £10 for fuel cells and £4 for electrolysis, based on its partners achieving 4.5GW of fuel cell production in 2030, circa 20% of the market and 5% of post-2030 electrolysis production.