Shares of Ceres Power Holdings plc (LON: CWR) plunged 7.1% despite the hydrogen energy company not making any new announcements today.
The hydrogen power company’s shares have been falling recently despite unveiling its 10kW solid oxide fuel cell in Korea, which was developed through its partnership with Doosan.
Ceres power proudly showcased the new fuel cell for use in buildings, which currently has the world’s highest power generation efficiency.
The sustainable energy company’s shares have rallied significantly since bottoming in mid-July, driven by positive investor sentiment.
Investors reacted positively to its announcement that it expects its half-year revenues to jump 90% to £17 million ($23.5 million) compared to the £8.9 million recorded in a similar period last year.
Ceres Power also told investors that it expects to generate annual revenues of £31.5 million, which is a significant jump in its revenues. However, the revised figures still make up a tiny percentage of its market capitalisation of £2.272 billion.
Many experts believe that Ceres Power shares are overpriced given its meagre earnings, and the firm’s shares are down 13.8% this year.
Regardless, Ceres Power is well-positioned to profit from the trend towards clean energy as its fuel cell technology has many use cases in vehicles, buses and buildings. In addition, new use cases continue to emerge in various industries.
Ceres Power’s technology also has a global clientele as most governments are committed to embracing cleaner energy sources with the ultimate goal of being carbon neutral by 2030 to 2050.
I would not buy Ceres Power shares at current prices because they are in the middle of a trading range.
*This is not investment advice.
Ceres Power share price.
Ceres Power shares plunged 7.06% to trade at 1106p, falling from Friday’s closing price of 1190p.
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