ITM Power "buy," target price reduced

09.06.08 - Panmure Gordon & Co

LONDON, June 9 (newratings.com) - Analyst Mark Davis of Panmure Gordon reiterates his "buy" rating on ITM Power Plc (IJ8), while reducing his estimates for the company. The target price has been reduced from 160p to 100p.

In a research note published this morning, the analyst mentions that the company was one of the major sponsors at the recent Hydrogen conference in California, which is expected to improve its profile. ITM Power's share price declined to an all-time low level due to the delay in the launch of the company's bi-fuel car, the analyst says. The company has ample funding with at least £25 million in cash, Panmure Gordon adds. The EPS estimates for 2008 and 2009 have been reduced from 5.4p to -5.3p and from 6.7p to -7.5p respectively.