ITM Power – from losses to profits – is this green hydrogen group on its ‘inflection point’, shares 66.50p TP 100p plus

06.08.2025

Next week, on Thursday 14^th August, ITM Power (LON:ITM), a global leader in electrolyser technology, will be declaring its Final Results for the year to end-April – they should be showing even greater losses.

They may well be worse this year, however, with the flow of alliances and orders coming through the group could well be reaching a major inflection point – such thoughts appear to be sparking interest by investors, with its shares having increased from 26p at the start of April up to 66.50p now.

What is more one major broker changed its view on the company, declaring its shares as a Buy with a Target Price of 100p.

The Business

The £411m-capitalised Sheffield-based company was founded in 2000 and went public in 2004.

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.

Hydrogen as an energy source is becoming increasingly important as the world looks to decarbonise.

It is invested in producing and harnessing green hydrogen, the cleanest kind possible, through our innovative PEM electrolyser technology.

Its PEM electrolyser systems are the perfect partner for renewable energy sources they use only renewable electricity and water to create green hydrogen through a process called electrolysis.

The hydrogen produced can be stored as a gas or liquid and can be released into the gas grid, be used as clean vehicle fuel, or in a host of industrial processes, significantly reducing emissions in logistics and heavy industry.

PEM electrolysers can rapidly react to fluctuations typical of renewable power generation, making the technology ideally suited for grid balancing and meeting energy deficits.

Management Comment On Hydropulse

In late June this year the group announced the launch of Hydropulse GmbH, a wholly owned subsidiary based in Berlin, Germany.

Hydropulse will build, own and operate decentralised green hydrogen production plants using ITM's modular NEPTUNE technology, with a focus on serving industrial customers under long-term offtake agreements.

ITM CEO Dennis Schulz, who is also MD of Hydropulse, stated that:

"With our disciplined and focused approach to electrolyser innovation and manufacturing, we have demonstrated that we possess a deep understanding of the market and the expertise to execute effectively.

Approximately 12 months in the making, the launch of Hydropulse opens a new chapter for ITM and the green hydrogen industry.

By addressing the bankability hurdle of green hydrogen projects through capital expenditure, operations, and technology risk mitigation for the end user, Hydropulse will solve the most pressing real-world challenges that are holding back exponential industry growth."

The Equity

There are some 617.37m shares in issue.

The larger holders include Linde Plc (16.2%), Rathbones Investment Management (5.53%), JCB Ltd (5.10%), Peter Hargreaves (4.48%), Hargreaves Lansdown Asset Management (3.67%), Deutsche WertpapierService Bank (3.52%), DZ Bank (3.24%), ING-DiBa (3.18%), HSBC Trinkhaus & Burkhardt (2.69%), and Commerzbank AG (2.66%).

Analyst’s Opinions

There are some 11 analysts following the company, six of whom call the shares as a Buy, one says they will Outperform, three call them as a Hold, while the other says they are a Sell.

That is a somewhat mixed view, while the consensus average Target Price is 87.40p, with the lowest call being 36.40p, but with the highest Target Price being 310p.

Alex Smith, at Berenberg, is now calling the shares a Buy, against his previous Hold view.

Furthermore, he has increased his Target Price from 59p to a confident 100p for the shares.

He considered that the group is reaching an inflection point after spending two years streamlining the business, and its product offering, while transforming its manufacturing capabilities over the past two years.

“As previous legacy contracts are delivered, and the company ramps up production, we begin to see a glide path to profitability.

With larger orders coming on board, meaning larger revenues, ITM can scale and drive a significant increase in the profitability of the business.

Given the significant and growing market backdrop for green hydrogen in ITM’s target markets and improved operational delivery, and as we approach the inflection point, we upgrade to Buy.”

In My View

Still with some time to go as the group continues to show losses, the group’s shares at 66.50p remain a gambling counter.

But Berenberg is suddenly very bullish.