Jefferies initiates coverage of ITM Power at 'buy'
Jefferies initiated coverage of ITM Power on Tuesday with a ‘buy’ rating and 800p price target.
The bank said its preferred play on green hydrogen is the electrolyser companies and within that sub-sector, ITM is its top pick, offering 60% potential upside to the target price.
"ITM has established and funded plans for capacity that we estimate to be double those of peers by 2025," Berenberg said.
"We like the partnership approach with Linde, Snam and Shell and see potential near-term catalysts from Middle East order flow."
The bank said its revenue estimates sit on average 15% ahead of consensus as it expects order inflow to accelerate more meaningfully and drop into revenues from FY23.
At 1335 GMT, the shares were up 4% at 498.42p.