RE: Share tipped13 Jul 2025 11:32
Ceres licenses its technology to others, rather than manufacturing itself, which is a good strategy until you lose a major partner and your shares react accordingly.
That's what happened earlier this year when Bosch said it was no longer working with Ceres and would also sell a 17 per cent stake in the business.
Analysts cut their target prices savagely, with Investec pulling back from a 600p price target to 145p, and Panmure Liberum back from 700p to 150p.
The share price now, at 101p, is below all these targets though, and outside of the Bosch disappointment, the Ceres order book looks as solid as its fuel cells.
Clients include Delta in Taiwan, Denso in Japan and Thermax in India, while the company's collaboration with Shell, in India, produced its first hydrogen in May.
The company is still loss making, though royalty revenue should come soon from several businesses which should tip the balance back, and there's no imminent danger of it running out of steam.
Analyst Alex O'Hanlon, at Panmure Liberum, reckons that the company will still have £80million of cash at its financial year end.
Potential new investors must decide whether the share price reaction around Bosch was overdone, and if they are willing to wait and see whether the company's other strategies will come good.
The company has already had something of a turnaround in the past few weeks, and the shares are up 16 per cent this month.
If more positive newsflow comes out in the coming weeks, those who buy in now may also have their portfolio refuelled. Buy
Sign In
Follow the stocks
