Analyst Constantin Hesse from Jefferies maintained a Buy rating on ITM Power (ITM – Research Report) and keeping the price target at p60.00.
Constantin Hesse’s rating is based on ITM Power’s recent increase in sales guidance and cash expectations. The company announced a significant 30% rise in sales guidance, which is now projected to be between GBP25.5-26.5 million, up from the previous estimate of GBP18-22 million. This upward revision is attributed to the fulfillment of all contractual obligations on a particular project.
Additionally, ITM Power has improved its cash guidance, now expecting year-end cash to be between GBP204-205 million, compared to the earlier forecast of GBP185-195 million. This increase is driven by working capital improvements from recently signed orders and reduced capital expenditures. Despite these positive developments, the impact on EBITDA remains negligible due to the nature of the legacy project involved, which has not historically contributed to the company’s margins.
Hesse covers the Industrials sector, focusing on stocks such as Nordex, NEL ASA, and PowerCell Sweden AB. According to TipRanks, Hesse has an average return of -8.0% and a 38.27% success rate on recommended stocks.