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Updated · Bloomberg · Jun 4Panmure Liberum Cuts Ceres Power to Sell, Sees 25% Downside After Rally
1 articles · Updated · Bloomberg · Jun 4Summary
- Panmure Liberum downgraded Ceres Power two notches to sell from buy, saying the UK stock’s sharp run-up has left it overvalued.
- A 590-pence price target implies about 25% downside from Wednesday’s close, with analysts saying the market has "got ahead of itself."
- The broker still warned investors not to short the shares, arguing the rally has been driven by sentiment and could remain volatile.
- The call marks a sharp turn on one of the UK market’s best-performing stocks, shifting the debate from momentum to valuation risk.
Insights
Is Ceres Power's 970% rally a speculative bubble or a justified bet on the future of AI energy? Why is a stock with a 25% downside risk and a 'sell' rating still considered 'too risky' to bet against?