Ceres Power shares fall 8.6% as broker downgrades to 'sell' on valuation concerns

Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) fell 7% to 320p on Thursday after Peel Hunt downgraded the fuel cell technology developer to 'sell' from 'hold', arguing the shares reflect an overly optimistic view of the company's long-term growth prospects. The broker raised its discounted cash flow-based target price from 190p to 200p following forecast revisions but said the stock's current valuation, at 14.3 times its 2026 revenue estimate, priced in a timing of cash returns and investment plans that it did not believe was justified.