ITM Power (LON:ITM) Trading Up 12.2% - Still a Buy?

Key Points

• Shares jumped 12.2% on Thursday to GBX 72.25 (intraday high GBX 73.55) on heavy volume of 21,667,146 shares — about a 620% increase versus average daily volume.
• Analyst views are mixed: two Buy and two Hold ratings give a consensus of "Moderate Buy" with a consensus target of GBX 91.67 (UBS target GBX 60, Berenberg target GBX 100).
• Fundamentals show the company is loss-making (quarterly EPS GBX -2.30, negative net margin ~108%, ROE -14.17%) despite strong liquidity (quick ratio 7.56), market cap ≈£443.3M and high debt-to-equity (6.99).

ITM Power Plc (LON:ITM - Get Free Report)'s share price was up 12.2% during trading on Thursday . The company traded as high as GBX 73.55 and last traded at GBX 72.25. Approximately 21,667,146 shares traded hands during trading, an increase of 620% from the average daily volume of 3,009,803 shares. The stock had previously closed at GBX 64.40.

Analysts Set New Price Targets

A number of analysts recently commented on ITM shares. UBS Group restated a "neutral" rating and issued a GBX 60 price target on shares of ITM Power in a research report on Friday, January 16th. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 100 price objective on shares of ITM Power in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of GBX 91.67.

ITM Power Stock Performance

The business has a 50 day moving average of GBX 63.05 and a 200 day moving average of GBX 69.20. The company has a market capitalization of £443.33 million, a P/E ratio of -14.39 and a beta of 2.27. The company has a quick ratio of 7.56, a current ratio of 2.62 and a debt-to-equity ratio of 6.99.

ITM Power (LON:ITM - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The company reported GBX (2.30) EPS for the quarter. ITM Power had a negative net margin of 108.00% and a negative return on equity of 14.17%. On average, sell-side analysts predict that ITM Power Plc will post -8.9214682 earnings per share for the current year.

About ITM Power

ITM Power was founded in 2000, and ITM Power PLC was admitted to the London Stock Exchange's AIM market in 2004. Headquartered in Sheffield, England, ITM Power designs and manufactures electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen, the only net zero energy gas, using renewable electricity and water.

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