Ceramic Fuel Cells Share News (CFU)

Goldman Sachs has nudged its price target up for Ceramic Fuel Cells after the Aussie alternative energy technology firm announced on December 22 that it had a government grant for its new mass manufacturing facility. The price target has been increased to 12p from 11p on a three-year time frame, but the stock's rating is maintained at 'neutral' by the US bank.'We believe long-term structural drivers exist for the distributed generation market that Ceramic Fuel Cells is targeting. However, the initial take-up of these products by boiler manufacturers and utility companies may be more challenging in the current economic environment,' Goldman Sachs believes.The bank has trimmed its fiscal 2010 sales forecast by 5.9% to A$5.2m, but longer term the picture looks brighter with Goldman Sachs upping its sales forecasts for 2011 and 2012 by 4.3% and 2.9% respectively.'Upside risks include a faster ramp-up of commercial sales of the residential combined heat and power products or zirconia sales than we expect. Downside risks include a slower than expected take-up of m-CHP by utilities and further financing concerns in the next 12-18 months,' the bank concludes.