Key Takeaways:
Shares in Ceres Power Holdings PLC (LSE:CWR) jumped 15% to 765.8p on Friday, as bulletin board chatter pointed to a significant price target upgrade from UBS to 970p.
While the UBS note could not be immediately verified, the rumor alone was enough to ignite the rally. "The sharp move suggests high market sensitivity to analyst ratings, especially following a string of positive updates," a trader in London said.
If confirmed, the UBS target would be the latest in a series of broker upgrades. In late April, Goldman Sachs raised its target to 670p from 530p, a move that triggered a 23% share price jump at the time. The current analyst consensus includes a 670p target from Goldman Sachs and a 480p target from Jefferies.
The surge adds to a remarkable 970% gain for the fuel cell developer over the past year. This rally has been underpinned by growing momentum for its technology in the data center market, which is hungry for power to run AI applications.
The rally in Ceres's stock was also fueled by a 25% overnight surge in the shares of Doosan Fuel Cell, a South Korean manufacturing partner. Doosan's stock has risen nearly 400% over the past year and is set to begin mass production of solid oxide fuel cell systems using Ceres's technology in July 2025, targeting the AI data center market.
Ceres operates an asset-light licensing model, earning fees and royalties from manufacturing partners. The company has recently secured key partnerships to deploy its technology. In March, it signed a strategic partnership with Centrica to accelerate the deployment of on-site power solutions for data centers and heavy industry across the UK and Europe. This was followed by an April deal between Centrica and Delta Electronics, another Ceres licensee, to deliver off-grid power to data centers.
The rumored upgrade and strong partner performance signal growing confidence in Ceres's ability to capitalize on the energy demands of the AI boom. Investors will be closely watching for official confirmation of the UBS price target and for further updates on the production ramp-up from partners like Doosan and Weichai, which is building what is expected to be the world's largest solid oxide fuel cell factory.
This article is for informational purposes only and does not constitute investment advice.
