Ceres stock soars on upbeat FY24 revenue forecast

Published 29/01/2025, 10:08
© Reuters.

Investing.com -- Shares of Ceres jumped 5.08% following the company’s pre-announcement of its FY24 revenue forecast, which is expected to be in the upper range of guidance.

The forecasted revenue is between £55-60 million, aligning with the RBC estimate of £55 million. Additionally, the company anticipates an increase in gross margin to 78-80%, up from 61% in the previous year.

The positive market response comes after Ceres reported a record order intake of £110 million, bolstered by significant partnerships, including those with Delta, Denso, and Thermax (NSE:THMX).

Ceres is also gaining attention for its potential exposure to AI demand, particularly in its Asian partnerships. This interest is spurred by developments from solid-oxide fuel cell peer Bloom Energy (NYSE:BE) and could become a growing theme for Ceres.

The company’s cash and short-term investments are reported to be around £102 million, which is in line with expectations but down from £140 million at the end of 2023.

Despite this, an RBC analyst commented, "We see less funding risk than we did a year ago and see in the quick commercial turnaround of 2024 evidence of competitiveness in the cleantech licensing space. While there remain risks of delays from partners, which may affect royalties payments, we also see Ceres more insulated from policy headwinds vs manufacturing peers."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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