Analyst Constantin Hesse of Jefferies maintained a Buy rating on ITM Power, with a price target of p60.00.
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Constantin Hesse has given his Buy rating due to a combination of factors that highlight ITM Power’s strong financial position and growth potential. The company’s preliminary results for FY25 aligned with expectations, showcasing a solid order backlog that has increased to GBP145 million from GBP135 million at the interim stage, marking a significant 90% rise compared to FY24. This growth in orders indicates robust momentum and an expanding pipeline, which is crucial for future revenue generation.
Moreover, approximately 60% of the current backlog consists of profitable contracts, which bodes well for the company’s financial health. Although the guidance fell short on the top line compared to consensus, it was more favorable regarding EBITDA and cash flow. Despite some uncertainties due to delays in final investment decisions and project cancellations, ITM Power’s strong balance sheet positions it well to navigate these challenges, making it a compelling investment opportunity according to Hesse.
Hesse covers the Technology sector, focusing on stocks such as SMA Solar Technology, PVA TePla, and Siltronic. According to TipRanks, Hesse has an average return of -0.5% and a 46.23% success rate on recommended stocks.
In another report released on August 1, Berenberg Bank also upgraded the stock to a Buy with a p100.00 price target.