Energy security and diversification are key in ATOME Energy PLC (AIM:ATOM) recent share price rally, according to Liberum,
Analysts at the broker reiterated their 'buy' rating and target price of 181p noting that the recent 30% rise is based on “what appears to be very little by way of tangible news flow.”
However, the current energy crisis and diversification needs in the macro market are feeding into ATOME’s share price growth.
Liberum said that specifically for ATOME, its core operations in Paraguay and Iceland are on track, including taking delivery of its first 1MW electrolyser in South America.
Additionally in Paraguay, the group Phase 1 operation is progressing well and it has entered into its first Front End Engineering Design (FEED) contract.
The FEED contract is in relation to works for a substation signed with Concrete-Mix, a local Paraguayan company.
The broker added that FEED contract is “the next step in what will in due culminate in an aggregate of 400MW of green hydrogen and ammonia production in Paraguay.”