First Berlin – ITM Power Plc Research Update (12/06/2019)

First Berlin Equity Research has published a research update on ITM Power Plc (ISIN: GB00B0130H42). Analyst Dr Karsten von Blumenthal reiterated his BUY rating and maintained his GBp 43 price target.

Abstract
ITM Power has published a trading & pipeline update. The order backlog reached a new high at GBP 45.1m. This is a 26% increase since February. According to preliminary figures, FY19 total income was in line with our forecast and rose 20% y/y to ca. GBP 17m. ITM currently has a portfolio of 34 projects. The ground-breaking ceremony for ITM's largest project, the 10 MW Shell ?Refhyne? electrolyser, will take place on 25 June. Further advanced projects are four hydrogen refuelling stations (HRS) in the UK, and a bus HRS in France. We have observed increasing market activity in the hydrogen sector in recent months with global players such as Bosch and MAN entering the market and large utilities such as RWE and Amperion announcing plans to develop and construct 100 MW electrolysers. The increasing market activity is reflected in a growing tender opportunity pipeline for ITM. The pipeline has risen 38% since February to a record level of GBP 330m. The increased order backlog improves visibility for 2020 & 2021 and supports our growth forecasts. We confirm our Buy rating and the GBp 43 price target.