Ceres Power tumbles after Panmure downgrade to 'sell'

(Sharecast News) - Ceres Power tumbled on Thursday after Panmure Liberum downgraded the shares to 'sell' from 'buy'. "To be crystal clear, we still believe in Ceres technology," the broker said. "However, as the shares are now up 8x in just 12 months and 244% year-to-date - we also believe this share price now ignores execution risks.

"These include: 1) Ceres relies on partners to scale manufacturing, limiting control over the pace of commercial rollout; 2) Early SOFC (solid oxide fuel cell) production remains operationally challenging, with yields and costs taking time to stabilise; and 3) Conventional power technologies may catch up before Ceres' ecosystem scales sufficiently.

"As a result, we move from buy to sell with a target price of 590p (from 475p)."

Panmure said that more partner progress and/or a rebasing of the share price would make it bullish again.

At 1400 BST, the shares were down 13% at 683p.