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(Sharecast News) - Ceres Power tanked on Thursday after Peel Hunt downgraded the shares to 'sell' from 'hold' saying the valuation reflects an overly optimistic growth view.
The broker - which lifted its price target to 200p from 190p following forecast revisions - said the Centrica collaboration hype appears "premature".
It pointed out that the chief executive confirmed any near-term revenue from the collaboration will be "modest".
Peel Hunt noted the shares trade on 14.3x estimated 2026 revenue. "We see Ceres' current valuation as reflecting an overly optimistic view of the timing of long-term cash returns and investment plans," it said.
At 1600 BST, the shares were down 7.8% at 318.40p.
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