Ceres Power PLC (LON:CWR) can be worth five times its current value if full advantage is taken of the opportunities now opening up says broker Berenberg – a huge fan of the fuel cell specialist.
Investor interest in the hydrogen and fuel cell sector has moved beyond how the technology works, adds the broker and is now focused on competitive dynamics, market opportunities and electrolysis.
In this scenario, Ceres offers one of the best opportunities for equity investors, argues Berenberg.
The AIM-listed group has leading solid-oxide fuel cell (SOFC) technology, a roster of global OEM partners and numerous upcoming near-term catalysts, it adds.
Berenberg has analysed the market and believes as industries seek to decarbonise and electrification needs increase, several winners will emerge with Ceres at the forefront of SOFC adoption.
SOFCs have a huge opportunity given their higher operating efficiency and ability to better address markets such as steel, where alternatives such as proton exchange membrane (PEM) and alkaline versions are less suited.
In numerous business segments, Ceres screens very favourably, Berenberg says, particularly in stationary power applications and based just on existing partnerships it estimates an addressable market of 500GW.
In revenue terms, that amounts to a more than £950mln a yeRead More – Source