ITM Power PLC Lifts Revenue Forecast, Analysts Bullish on Recovery Story
Key Ideas
- Shares in ITM Power PLC surged 8% following the company's increased revenue forecast for the year.
- The Sheffield-based company specializes in electrolyser systems for green hydrogen production.
- Analysts are optimistic about ITM Power's recovery, with Peel Hunt reaffirming a 'buy' rating and 70p price target.
- Despite expected losses, the company's improved cash guidance indicates a more stable balance sheet.
ITM Power PLC saw its shares rise by 8% to 31.08p after the company raised its revenue forecast for the year, now expecting between £25.5m and £26.5m. This 30% increase from previous guidance was attributed to additional customer commitments and quicker revenue recognition. Peel Hunt, a brokerage firm, maintained its 'buy' rating and a 70p price target for ITM Power. They highlighted that the improved cash guidance implies a more stable financial position for the company, equivalent to around 33p per share in net cash. Although there are anticipated losses, these are largely linked to older contracts rather than current trading, indicating a positive outlook for ITM Power's future performance in the green energy sector.