Hydrogen technology investments by Ceres Power and ITM remain favorable prospects, according to a U.S. financial institution's viewpoint.
In the rapidly evolving hydrogen market, two British companies, Ceres Power and ITM Power, continue to make strides.
Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) has recently been upgraded to a "Buy" status by analysts, with a target price of 265p. The company is commissioning a 1-megawatt demonstrator in partnership with Shell, and has signed two new licensing agreements with major original equipment manufacturers (OEMs) in the last ten months. These agreements offer improved revenue visibility through 2027-2028 for Ceres Power.
Analysts believe that Ceres Power is best positioned once volumes pick up due to its solid oxide (SOEC) technology. Historically, Jefferies has viewed Ceres Power positively as a key player in hydrogen fuel cell and electrolysis technology growth, reflecting broader optimism about green hydrogen's role in decarbonization. However, as of August 2025, there are no specific or updated statements from Jefferies regarding their current outlook on Ceres Power in the hydrogen market.
Meanwhile, ITM Power PLC (AIM:ITM) has an order backlog of £127 million and has been maintained as a "Buy" by analysts. The company's participation in the UK's Hydrogen Allocation Rounds could drive additional orders for its NEPTUNE V systems. ITM Power has Linde as a key shareholder, and the company closed 2023 with cash reserves of £230 million.
However, ITM Power's competitor, Nel, has faced challenges. The company has been downgraded to "Underperform," and slow order momentum and delays are weighing on its performance. Nel has cash reserves of NOK1.90 billion and a projected cash burn of approximately NOK800.00 million in 2025.
The UK aims to reach 1 gigawatt of hydrogen capacity by 2025, and both Ceres Power and ITM Power are seen as hydrogen winners by a US bank. The current backlog of Nel only covers about one year of revenues, indicating a potential opportunity for ITM Power to capture a larger share of the market.
While the specific current outlook from Jefferies on Ceres Power and ITM Power in the hydrogen market is not available, consulting the latest Jefferies research reports or financial news platforms directly would provide the most up-to-date analyst sentiment.
Project delays in the renewable-energy industry, particularly in the hydrogen sector, could potentially benefit Ceres Power and ITM Power, given their current position in the market. Financial analysts keep a "Buy" status for both companies, with optimism about their roles in decarbonization and theUK's goal to reach 1 gigawatt of hydrogen capacity by 2025.
