Berenberg raises target price on 'conviction buy' Ceres

Analysts at Berenberg raised their target price on clean energy technology group Ceres Power from 470.0p to 580.0p on Friday, stating that they remained "conviction buyers" of the stock.

Berenberg highlighted that investor interest in the hydrogen and fuel cell sector had been "exponential" in recent months and said long gone were the more basic questions about how a fuel cell works.

The German bank said these questions had now been replaced by detailed debates on competitive dynamics, market opportunities and electrolysis.

Berenberg noted that the next six to nine months for Ceres "should be exciting" with Bosch and Weichai both expected to announce plans to scale-up production of the company's SteelCell product and said it was also "optimistic" about progress with other partners - like Doosan and Honda.

"Ceres offers one of the most compelling opportunities for equity investors. With its leading solid-oxide fuel cell (SOFC) technology, roster of global OEM partners and numerous upcoming near-term catalysts, we believe the recent share price pullback offers a compelling entry point into the stock," said Berenberg.

"With more than £100m of cash on the balance sheet, we believe Ceres is well placed to capitalise on any new growth opportunity."