ITM Power "buy," target price reduced

31.01.08 - Panmure Gordon & Co

LONDON, January 31 (newratings.com) - Analyst Mark Davis of Panmure Gordon maintains his "buy" rating on ITM Power PLC (IJ8), while reducing his estimates for the company. The target price has been reduced from 340p to 160p.

In a research note published this morning, the analyst mentions that the company's interim results indicate that ITM Power has been able to achieve sound cost control. The launch of the bi-fuel car is likely to be delayed for a few months due to the final development of the home refuelling system, the analyst says. The revenue estimate for 2009 has been reduced from £10.4 million to £3.5 million, to partly reflect the refuelling system lag and the absence of visibility into the company?s performance going ahead. The EPS estimate for 2009 has been reduced from -3.27p to -6.70p.