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Goldman Sachs flags Ceres Power as a top European pick for August
Goldman forecast a 168% gain for Ceres Power over the next 12 months, despite the stock falling more than 31% in July.
Goldman Sachs has named U.K. fuel cell developer Ceres Power (CWR) as a top European pick for August, forecasting a 168% gain over the next 12 months, according to coverage cited by Yahoo Finance. The bank characterized the call as notable because it involves a company with a long history of not being profitable.
The shares have been volatile, with Ceres falling more than 31% in July after investors pulled back from artificial intelligence spending. Despite the July sell-off, the stock is reported to be up more than 168% year to date and still below its 52-week high of 872.50p.
Goldman’s thesis centers on using solid oxide fuel cell technology to address AI power demand, where electricity needs to be available faster than utilities can add grid capacity. The coverage says Ceres does not generate electricity itself, instead licensing its technology to manufacturers that build the systems.
The report also highlights specific execution risk tied to Ceres’s royalty model, naming Doosan Fuel Cell and Delta Electronics as manufacturers developing and mass-producing systems based on Ceres technology. If either partner slows production plans, Ceres royalty income could be affected, the article says.