ITM Power's robust technology fuels Investec's interest in the shares
Analysts at Investec reiterated their 'buy' recommendation on ITM Power's shares and boosted their target price, telling clients the company was demonstrating both scale and robustness in its product.
FTSE AIM All-Share
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ITM Power
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They also highlighted the company's favourable operating environmemt, given recent newsflow surrounding the growing potential for hydrogen to form part of a decarbonised future, especially in transport.
Regarding the company's latest set of numbers, at £9.22m its total projects income was ahead of the £8.32m which they had forecast, thanks to greater income from grants.
There had also been a "strong uplift" in projects under negotiation in recent months, which in their judgment was "indicative of a substantial acceleration of activity by the potential client base".
They also lifted their fiscal year 2018 estimate for the firm's income from projects by 55% after the company announced it had inked a 3MW bus hydrogen refueller, which Investec had anticipated would be a 1MW installation.
In parallel, Westminster had outlined a £23m scheme for hydrogen charging stations and ITM's technology had shown its robustness, with the Thuga project exceeding expectations.
ITM had also unveiled a 50MW refueling system at the beginning of the month in Las Vegas - which could be scaled up - another step towards ramping up for stronger growth.
Investec reitrated its 'buy' recommendation for ITM and raised its target price from 28p to 39.5p.
"Now that ITM has proven the technology over a number of years and is offering grid scale systems, we believe this paves the way for more rapid growth. This in turn lifts our confidence that ITM Power presents an increasingly exciting opportunity for investors."