In a report released today, Michele Della Vigna from Goldman Sachs maintained a Buy rating on Ceres Power Holdings, with a price target of p138.00.
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Michele Della Vigna has given his Buy rating due to a combination of factors, primarily focusing on Ceres Power Holdings’ recent strategic advancements and market positioning. The company’s collaboration with Doosan Fuel Cell, which has commenced mass production of Ceres-designed solid oxide fuel cell systems, marks a significant milestone. This development not only enhances Ceres’ credibility but also transitions its revenue model from one-time licensing fees to recurring royalty income, expected to constitute a substantial portion of total revenues by 2030.
Despite the stock’s recent strong performance, it remains undervalued compared to its peers, trading at a discount. While there are some risks, such as the absence of new licensing agreements this year, the potential for additional agreements could stabilize revenue. The analyst has also adjusted the 12-month price target upwards, reflecting a lower cost of capital and reduced risk following Doosan’s commercialization efforts. This combination of strategic progress and financial metrics supports the Buy rating.