RBC Capital reiterates ‘outperform’ on ITM Power

RBC Capital Markets reiterated its ‘outperform’ rating on ITM Power on Friday as it pointed to a "relatively attractive" risk/reward profile.

"While we lower our delivery trajectory for the rest of the decade on more prudent delivery assumptions, ongoing commercial momentum offers strong evidence of validation of the firm’s technology and manufacturing capability, while a major project reaching FID now also suggests less top-line risk vs peers for the near-term," the bank said.

It cut its price target on the shares to 100p from 150p but said "we are still left with nearly 100% implied upside from today’s share price".

RBC said ITM Power is poised to be a key player in the Green Hydrogen sector given its growing position in the European electrolyser space.

"We expect the strategic partnerships with Snam and Linde to drive a substantial increase in revenues over the next three to five years," it added.