New boilers lift Ceres Power The Government’s announcement of further help for householders to instal combi boilers will give cheer to Ceres Power Smaller companies: Robert Lindsay
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Directors of Ceres Power will be rubbing their hands with glee after the Government’s announcement this week of further cash help for householders who install combined heat and power boilers. The company is gearing up for production of its first fuel cell boilers towards the end of the year. Analysts at Evolution raised their Ceres price target to 250p, saying that even before any subsidies, householders should make a 13 per cent annual return on a fuel cell boiler because they generate surplus energy that can be sold to the Grid. “The new subsidies should boost that return significantly, making it a truly compelling investment,” it said.
Yet Ceres eased 1¾p to 203p as investors continue to fret over the costs of ramping up production and any potential delays. Evolution said the first significant profits would not materialise until 2015, when it expects to sell around 55,000 units through British Gas, its partner.
Directors of Ceres Power will be rubbing their hands with glee after the Government’s announcement this week of further cash help for householders who install combined heat and power boilers. The company is gearing up for production of its first fuel cell boilers towards the end of the year. Analysts at Evolution raised their Ceres price target to 250p, saying that even before any subsidies, householders should make a 13 per cent annual return on a fuel cell boiler because they generate surplus energy that can be sold to the Grid. “The new subsidies should boost that return significantly, making it a truly compelling investment,” it said.
Yet Ceres eased 1¾p to 203p as investors continue to fret over the costs of ramping up production and any potential delays. Evolution said the first significant profits would not materialise until 2015, when it expects to sell around 55,000 units through British Gas, its partner.
CFU Price at posting:
16.8¢ Sentiment: Buy Disclosure: Held
