0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
ITM Power PLC (LON: ITM)
ITM Power PLC is an FTSE AIM UK 50 Index listed Company that generates hydrogen gas based on Proton Exchange Membrane (PEM) technology. This technology only uses electricity (renewable) and tap water to generate hydrogen gas on-site and has a product offering capable of being scaled to 100MW+ in size.
Growth Prospects
Key Risks
Key Fundamental and Shareholders Statistics of ITM Power PLC.
Linde UK Holdings No.2, Ltd. is the most significant shareholder as it holds nearly 100.00 million shares.
H1 FY22 Financial Highlights (for the six months ended 31 October 2021, as of 27 January 2022)
(Source: Company Filings)
Share Price Performance Analysis
(Source: Refinitiv, Research done by Kalkine Group)
On 03 May 2022 at 10:43 AM GMT+1, ITM’s shares were trading at GBX 313.40, down by around 5.43% against the previous day closing price. Stock 52-week High and Low were GBX 536.15 and GBX 208.24, respectively.
On a daily chart, the stock price is sustained between the lower Bollinger band and the middle Bollinger band. Hence, there could be an uptick in the stock price in the near term. Also, the 14-days RSI stood at ~41.16 levels.
Valuation Methodology: EV/Sales Approach (FY23E) (Illustrative)
Business Outlook
ITM delivered a decent business performance in H1 FY22, with solid growth in top-line business and excellent revenue visibility illustrated by significant backlog and pipeline. Furthermore, ITM remained focused on the delivery of products and converting the tender pipeline into contracted projects. The Company aims to enhance its production capacity to 5 GW by the end of 2024 to supply a growing base of customers. In a nutshell, the Company remained committed to meeting its production expectations of 33-50 MW of finished product in the shorter term.
Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Considering the Company’s market leadership, increased production volume, continued investments, and support from the valuation as done using the above method, we have given a “Speculative Buy” recommendation on ITM Power PLC at the current market price of GBX 313.40 (as of 03 May 2022 at 10:43 AM GMT+1), with lower-double digit upside potential based on 30.75x EV/NTM Sales (approx.) on FY23E sales (approx.).
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.
Note 3: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenario.
Note 4: Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.
Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.
Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.