Goldman Sachs Upgrades Ceres Power to Buy, Highlights Data Centre Fuel Cell Demand

Goldman Sachs has upgraded Ceres Power (LON: CWR) to Buy from Neutral, lifting its price target to 190p from 138p. 

The bank told investors in a note that it believes the company is well-positioned to benefit from data centre-driven fuel cell adoption, adding that downside risks to consensus estimates appear limited in the near term following Ceres’ reset of expectations with its first-half results.

The latest move marks Goldman’s second upgrade on the stock this year, after analyst Michele Della Vigna raised Ceres to Buy in January with a 220p target, citing its strategic exposure to Asian markets. 

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That call was reversed in July when Goldman cut the shares back to Neutral, arguing valuation had become stretched following a period of outperformance.

Ceres Power shares are up more than 225% in the last six months.

The fresh upgrade highlights growing confidence that fuel cell adoption linked to expanding data centre infrastructure will provide a new tailwind for the company. 

Ceres’ technology has been promoted as a potential enabler of lower-emission energy solutions in industrial and digital infrastructure, areas increasingly under scrutiny as demand for computing power accelerates.

Other analysts have taken a more cautious approach in 2025. Berenberg cut its target to 340p from 650p in February but maintained a Buy stance, while RBC Capital lowered its target to 110p from 180p with a Sector Perform rating.

Despite these varied views, Goldman’s latest note signals renewed optimism. With consensus forecasts already reset, the bank argues that Ceres offers investors a more attractive entry point.