Ceres Power Holdings (LSE:CWR) is a stark case in point. Having rocketed almost 300% between January and May, the clean energy company has since lost 41.8% in a single month, including a brutal 25.8% drop in the final week of June.

What just happened?

A business at the frontier of clean energy

As a quick introduction, Ceres Power’s a technology licensing business that develops solid oxide fuel cells (SOFC) and electrolysers.

Rather than manufacturing products itself, it licenses its technology to industrial partners such as Doosan, Delta Electronics, Weichai, and Shell, earning royalties as those partners scale production.

It’s a genuinely differentiated model. And the commercial case is increasingly compelling, with SOFC demand forecast to reach 22 gigawatts a year by 2030, driven in large part by the explosion of AI-powered data centres seeking fast, reliable, off-grid power solutions.

In 2025, the business reached a significant milestone. Doosan commenced mass production of Ceres-designed fuel cells at its new 50MW facility in South Korea, generating the company’s first-ever royalty income. And reaching this milestone is a big reason why the Ceres stock price went parabolic earlier this year.

But if the business is progressing, why has the stock now suddenly started crashing?

What’s going on?

Three factors converged to trigger the sell-off. First, a broader rotation away from high-growth speculative stocks in June pushed investors out of long-duration technology names. And Ceres, which has yet to turn a profit, was squarely in that crossfire.

Second, the company announced a capital raise of around £100m, issuing 17.8 million new shares.

With a strengthening balance sheet and key partners scaling up, it isn’t surprising to see this share issuance get oversubscribed.

The only problem is, existing shareholders have just been diluted. And this substantial dilution, paired with a previously explosive run up, have caused investors to reassess, concluding that Ceres’ shares may have simply run too far ahead of its fundamentals.

With that in mind, a sharp pullback isn’t too surprising. So what should I do now?

Is this a buying opportunity?

On the one hand, contracted revenues for 2026 stand at around £45m with management targeting a 20% reduction in operating costs this year.

And with partners such as Delta Electronics building a dedicated manufacturing plant for Ceres-designed cells in Taiwan, the group’s revenue stream could be set to accelerate.

On the other hand, Ceres remains unprofitable, reporting a £47.6m loss last year with its first royalties only contributing around £110,000. That’s expected to dramatically change. But for the time being, the gap between the vision and the financial reality remains very wide.

The bottom line

Ceres Power’s not for the faint-hearted. It’s a pre-profit, high-conviction technology play that lives and dies by commercial execution and partner momentum.

There’s a very real thesis behind expected data centre demand for SOFCs. But even after its recent sell-off at a price-to-sales ratio of 28.2, the stock continues to trade at a pretty lofty premium.

That’s why I think there are far better UK shares for investors to explore today.

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Zaven Boyrazian does not hold any positions in the companies mentioned.

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Today (1 July), its shares are changing hands for nearly half what they were at the start of June. What’s going on? More importantly, does this represent a golden opportunity to consider? Let’s take a closer look.

A bit of a roller coaster

It’s been an amazing year for those holding the stock.

When I first wrote about the group on 4 April, its shares were changing hands for 337p. I then left it a few weeks (1 June) before revisiting the investment case. At the time, its share price was 814p. Now, it’s around 450p. A year ago, I could have bought one of the group’s shares for 80p. It’s been an incredible journey.

Running out of cash

Some of the drop from its 52-week high of 873p, recorded in May, has resulted from the company’s decision to ask shareholders for an extra £103m. The placing price was 570p. It’s a reminder that losses have to be funded from somewhere.

During the year ended 31 December 2025 (FY25), the company reported an operating loss of £47.6m on revenue of £32.6m. A year earlier, the figures were £31.3m and £51.9m respectively.

The group said it needed the additional cash to “establish the right balance sheet to drive growth and enable selective investment to support partner scale-up”.

But in the absence of further information, the company appears to be going backwards. And I suspect many would argue that a market cap of nearly £1bn is excessive for a loss-making business that isn’t growing. This could explain the recent volatility in the group’s share price.

My view

However, I’m persuaded that SOFCs could play a major part in the transition to net zero and, more immediately, help solve the conundrum of how to give data centres the bucket loads of power that they require. If I’m right, I think the stock could take off.

The group’s entered into a number of agreements with some large customers – Centrica and Doosan are just two — that will see it licence its technology to third parties. In return, Ceres Power will receive a royalty. Significantly, it received the first of these in 2025. Admittedly, £110,000 isn’t much to write home about. But this could be the start of something very big.

The group already has a gross profit margin of 70%. With a large royalty income stream it could be even higher. This capital-light business model requires less investment in property, plant, and equipment, and ties up less cash in working capital.

I recently took advantage of the pullback in the group’s share price. But in my short time as a shareholder, I’ve seen how erratic the stock can be.

With an unproven path to profitability, it’s most definitely at the riskier end of the investment scale. However, over the long term, I think it could grow into something much bigger and highly profitable. Those of a risk-averse nature should probably look elsewhere. Others could consider the stock.

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

James Beard owns shares in Ceres Power Holdings plc.

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Those days increasingly seem like a distant memory. The Ceres Power share price has soared an incredible 665% over the past year. That gives the fuel cell specialist a market capitalisation of £1.3bn, earning it a place in the FTSE 250.

Ceres Power has taken advantage of its buoyant share price to raise around £100m of new capital this month by issuing new shares. This dilutes existing shareholders.

So far I have stayed on the sidelines, but could this growth story still have legs – and ought I to invest?

A revamped business model has helped Ceres

Part of the reason for the surge in the Ceres Power share price dates back several years. It had spend a lot of time preparing for a deal in China, sucking up a lot of management effort ultimately to no avail, at least in the short term.

Ceres revised its approach to the Chinese market and also built business with customers in other markets, such as Taiwan. It also started to ramp up the number of customers it had worldwide.

Part of the attraction of the current approach is that by licensing technology to some customers, Ceres can earn royalties – a less capital-intensive business model than doing everything itself. That saw Ceres’ first royalties flow last year.

Here’s my problem with the share price

Over time, that shift could turn out to be decisive. Ceres’ technology has long been admired, but the challenge has been how best to commercialise it at scale. The company’s business performance in recent years suggests it is now nearer than ever to achieving that.

However, while the surging share price suggests investor optimism has boomed, I still have some doubts.

Ceres remains heavily lossmaking. It is also burning cash. Last year, revenue actually shrunk rather than grew, but at £33m, was still substantial. Ceres is not just an idea in a lab like some rivals, but a functioning medium-sized business.

But the firm’s operating loss, at £48m, was even bigger than its revenues. Operating activities burned through £20m net cash, leaving the company with £83m of net cash and investments at the end of last year. That helps explain this month’s capital raise.

I think the technology has strong potential and I appreciate the moves Ceres is making towards long-term commercial growth and a more attractive business model. But this still feels like a punt. Ceres Power has been spilling red ink for years and continues to do so. It is still burning cash at a rate that alarms me given the size of its business.

So I will continue to watch the business but have no plans to buy this UK growth share.

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

Christopher Ruane does not hold any positions in the companies mentioned.

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So, what’s going on here? And are the shares worth a look after this huge decline?

A shift in the markets

In my view, there are several factors that have contributed to the drop here. The first is a general shift by investors out of speculative stocks.

This has been happening for most of June. In terms of what’s driving this, I think the SpaceX IPO is a major factor.

I believe that investors have been pulling money out of speculative holdings in order to raise capital for the IPO. This takes place tomorrow (12 June) by the way.

Concerns over valuations could also be a factor here, though – recently there’s been a little bit of a shift out of growth stocks and into value shares. I’ll point out that on 27 May, I noted that the valuation here was very high and said that a lot of growth was already priced in (I almost called the top to the day).

A capital raise

The second factor is a substantial capital raise. Earlier this week, the company proposed raising approximately £100m to strengthen its balance sheet in order to drive growth and enable investment to support partner scale-up.

Yesterday, this capital raise was completed. In the end, the company raised £103m at a price of 570p per share (a discount to the share price at the time).

A total of 18m new shares were issued, representing approximately 9.2% of the existing issued ordinary share capital of the company prior to the capital raise. So, there was a fair bit of ‘dilution’ here.

All of a sudden, existing investors own less of the company that they did previously. Their slice of the pie (revenues or earnings) has shrunk.

An investment opportunity?

Are the shares worth a look near 570p? Well, they could be if an investor is looking for exposure to the clean energy and/or AI power themes and comfortable with risk (the company isn’t yet profitable).

There’s no doubt that this company has some interesting technology. Recently, it has signed deals with the likes of Centrica and Weichai Power, which suggests that it’s doing something right.

That said, the valuation is still very high, even after the recent share price drop. Comparing forecast revenue this year (£59m) with the market cap £1.1bn, we get a price-to-sales ratio of around 19, which means that the stock isn’t cheap.

Note that there’s no guarantee that the company will actually generate revenue of £59m this year. In the past, sales have often come in well below analysts’ forecasts (this is a risk to consider here).

Personally, the shares are too risky for me. I am keen to get some power stocks into my portfolio at some stage. However, the lack of profitability and the high valuation here spook me.

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

Edward Sheldon does not hold any positions in the companies mentioned.

The post Ceres Power shares just crashed 35%! Time to consider buying? appeared first on The Twelfth Magpie.

Let’s see.

Hot

Pan African Resources is a mid-tier gold producer with operations in South Africa and Australia. And like all in the sector, it’s benefitted hugely from the recent surge in the gold price.

However, although shareholders have done well, it’s a reminder that earnings in the sector can be volatile. Along with all sorts of random events posing a threat to production – the weather and industrial action, to name just two — it means investing in the sector can be risky.

But looking ahead, I think demand for gold will continue to rise. Central banks are buying vast quantities as they seek to hedge against inflation and mitigate the risk of sovereign debt default. Encouragingly, the group’s production costs are lower than its peer group average.

For those attracted to the sector, there are lots of miners to choose from. Indeed, I’m already exposed through a small stake in Endeavour Mining. However, one gold miner’s enough for me. Others could consider Pan African Resources.

Hotter

Saga, the over-50s specialist, recently disposed of its under-performing insurance underwriting arm – it continues to act as a broker – and now focuses on its ocean and river cruises business.

In its favour, its target demographic has above-average disposable incomes. And those in their ‘golden years’ tend to show more brand loyalty and be less price conscious.

However, Saga’s balance sheet shows a relatively high level of debt when compared to earnings (3.7 times). And its travel business could be vulnerable to a general macroeconomic slowdown.

But the group’s clearly going in the right direction. It increased its underlying earnings per share by 77% during its January 2026 financial year. And despite its stellar run, the stock trades on a modest 13.8 times historic earnings. On this basis, I think it could be one to consider.

Hottest

Since May 2025, Ceres Power Holdings stands head and shoulders above all others on the FTSE 250.

When I last wrote about the fuel cell provider on 4 April, I said: “Despite the obvious risks surrounding a company that’s seeking to develop relatively new technological solutions, I think the stock’s one to consider.”

At the time, its share price was 320p. Just under eight weeks later, it’s comfortably over 800p. Even though I remain a fan of the group, this is a little rich for me.

Yes, I like its high margin and the fact that existing grid constraints could lead to increased demand from data centres. I also appreciate the way in which the business de-risks its operations by licensing its technology to others.

However, a market-cap of £1.6bn feels lofty, especially for a company that reported a £48m loss in its most recent financial year.

Turning hydrogen into heat and power sounds like a good idea to me. Therefore, I shall revisit the investment case should the group’s share price take a bit of a dip.

Final thought

The FTSE 250 might not be the first choice of investors on the hunt for exciting growth stocks but these three suggest it might be worth taking a closer look at the index.

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

James Beard owns shares in Endeavour Mining plc.

The post Hot, hotter, hottest. Is it too late to consider these 3 amazing FTSE 250 shares? appeared first on The Twelfth Magpie.

So, what’s driving this explosive rally? And should investors consider adding this stock to their portfolios?

It’s all about AI

The rally here is down to enthusiasm for AI stocks. More specifically, enthusiasm for companies that can provide power for AI (this is a major bottleneck in the supply chain).

As its name suggests, Ceres Power is, unsurprisingly, a power company. It specialises in solid oxide fuel cell technology (this turns hydrogen directly into electricity), licensing its tech to other industrial companies.

So right now, it’s seeing a lot of interest. The fact that the share price has risen 268% in 2026 suggests that investors see this company as a major beneficiary of the AI boom.

Note that after this rise, it now has a market cap of around £1.6bn. That is quite a high valuation given its sales (more on this later).

The bull case

Now, there are definitely some reasons to be bullish here. One is that Ceres has won some major deals recently.

Late last year, the company announced a licensing deal with Chinese firm Weichai Power (its largest shareholder). This will see it manufacture solid oxide fuel cells and stacks to power data centres in China.

More recently, in April, Ceres announced a deal with Centrica and Delta Electronics. This is to serve data centres and energy intensive industries in the UK and Europe.

One other thing to like is that brokers are becoming far more positive on the name. Recently, a number of firms have given the stock a Buy rating.

The bear case

On the other hand, the company’s valuation is extremely high right now. With analysts expecting sales of only £59.3m this year, we have a price-to-sales ratio of nearly 50 and that adds a lot of risk to the investment case.

Another risk is the fact that there are no profits. This company has a track record of generating large losses and analysts don’t expect it to be profitable this year or next.

The stock has also attracted some attention from short sellers in the recent past. Late last year, Grizzly Research posted a scathing report on the company (this is probably worth reading if someone is thinking about investing in Ceres).

Finally, there’s the parabolic move higher in the share price. In my experience, when shares rise quickly like this, they often experience a sharp fall at some point.

Will I buy?

Putting this all together, it’s a tricky stock. While there appears to be a lot of growth potential, much of this looks to be already priced in.

Personally, I won’t be investing in the company. I think there are better ways for me to play the AI power theme.

Like some of these names…

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

Edward Sheldon does not hold any positions in the companies mentioned

The post Up 268% in 2026, Ceres Power is the FTSE’s hottest AI stock appeared first on The Twelfth Magpie.

The only slight problem is, there’s no obvious reason for the morning spike. We have no results update, no new announcements from the company… nothing concrete at all. So what’s happening?

Potential upgrade

The jump appears to be based on developing rumours. Investors chatting on forums are talking about a potential price target upgrade from UBS. At a mooted 970p, it would suggest a 46% increase from Thursday’s close.

Shares in South Korea’s Doosan Fuel Cell are also on the up, driven by strong orders and optimism over the company’s solid oxide fuel cell systems aimed at AI data centres. The connection? Doosan is a manufacturing licensee for Ceres technology.

How does that old saying go — buy on the rumour, sell on the news? Hmm, that’s for short-term trading, not long-term investing. So it’s out of the window for me. But it does mean I’ll be keeping my eyes peeled for news in the coming days and weeks.

AI confusion abounds

To divert from my core subject for a minute. A strange thing happened in the US on Wednesday. AI chip leader Nvidia posted another standout quarter. Revenue climbed 85% year on year, with adjusted earnings per share up a storming 140%. But the share price declined over the week. It’s still on a forward price-to-earnings (P/E) multiple of only 24 — dropping to just 15 on 2029 forecasts.

So the world’s hottest AI stock, up more than 1,300% in five years, can be bought at a valuation around the average for our modest little FTSE 100. The world might have gone mad.

What do we take from this? One thing, maybe, is that AI-related share prices bear little connection to traditional valuation metrics. That’s perhaps just as well for Ceres Power shareholders.

A UK route into AI?

The thing is, Ceres is loss-making right now. Analysts project a profit by 2028, but only a small one. It would put the P/E at a scary 640. Now, that can easily happen in the year a growth stock becomes profitable. And the predicted 2029 multiple, when we have it, might come in much closer to earth.

But it makes it hard for investors to put any kind of rational value on Ceres shares at the moment. At least CEO Phil Caldwell was able to report concrete progress in March…

In 2025 our first partner achieved scaled production, unlocking Ceres’ first royalties, a significant milestone for the business. We sharpened our commercial focus to address rising demands for power generation and advanced our solid oxide technology toward becoming the industry standard, setting a strong foundation for a successful 2026.

— FY 2025 results

Buy, or avoid?

Ceres doesn’t fit my investing profile these days — I see jam-tomorrow growth stocks as something for a younger generation. But risk-takers might do well to consider putting a little bit into the shares to get a foot in the AI door.

Should you invest £5,000 in Ceres Power Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ceres Power Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Why did this skyrocketing FTSE 250 growth stock just jump another 15%? appeared first on The Twelfth Magpie.

As a result, Berkshire’s now sitting on nearly $400bn in cash!

Last weekend, the ‘Oracle of Omaha’ warned again about the current stock market. In an interview with CNBC, he said we’ve never had “people in a more gambling mood than now“. He likened today’s market to a “church with a casino attached“.

A casino! What should I do as an investor if Buffett is correct? Here are my thoughts.

Is there a casino?

Looking around the market, it’s not hard to spot the speculation that Buffett is referring to. Outside of crypto, the two most obvious areas to me are in the AI infrastructure buildout and the space sector.

When I mention the AI buildout, there are two parts to that. There are leading chipmakers like Nvidia, Micron and AMD whose profits are absolutely skyrocketing, thereby justifying much higher share prices (at least in the short-to-medium term).

On the other hand, there are smaller, more speculative stocks that have piggybacked on this powerful theme. For instance, Ceres Power (LSE:CWR) is up 949% in the FTSE 250 in just the past year!

The massive expansion of AI data centres has created a need for reliable on-site power. And because traditional power grids often can’t keep up, companies are turning to fuel cells. 

Ceres is a fuel cell technology company. In this sense then, the excitement makes sense.

However, Ceres is also unprofitable, with just £60m in revenue expected this year. This translates into a forward price-to-sales (P/S) ratio of 24.

I found this stock quite interesting last summer at 150p. However, now at 725p, I think Ceres is very much part of the casino that Buffett is talking about.

Speculative space

Space is another exciting growth market that has turned very speculative in 2026. We can see this with the extraordinary $1.75trn valuation that SpaceX is hoping to achieve this summer.

The rocket pioneer now has a division called SpaceXAI, so it combines both space and AI in one investment. Again though, this has driven most other space-related stocks to speculative levels.

Rocket Lab (NASDAQ:RKLB) is one. As a vertically integrated space company, this is the closest listed comparison to SpaceX.

Hence why the stock’s up roughly 2,431% in three years — including a 21% surge today (8 May).

Rocket Lab is growing like gangbusters. In Q1, revenue surged 63.5% to $200.3m, while the backlog of work grew to a record $2.2bn. It sold more rocket launches in Q1 than in the full year 2025!

The stock has been on my watchlist for some time. However, the forward P/S multiple is around 64, which I don’t think offers me much value. I think I’ll get the stock much cheaper in future if I’m patient.

Sticking to the church

If parts of the Nasdaq resemble a casino, then the London Stock Exchange is still a church, with a lot of value on offer. And perhaps because of my age, I much prefer visiting a quiet cathedral these days to a glittering casino.

So the UK is where I’ll focus my attention in May.

The post Warren Buffett just sounded an alarm to the stock market appeared first on The Twelfth Magpie.

Aside from the crazy rally, an important question many are asking is if this can keep going?

A crazy ride

I’m talking about Ceres Power Holdings (LSE:CWR). To begin with, let’s consider the big picture. Ceres sits in the middle of two hot themes right now, hydrogen and decarbonisation. Its fuel cell and electrolyser technology is designed to help power industrial sites and data centres with lower emissions.

We’re seeing both governments and corporations refocus on net zero goals, especially given the vulnerabilities flagged by more traditional energy sources in the Middle East. This is one key factor supporting the rally, not only in the stock but also in the sector.

Sentiment alone doesn’t deliver a 1,000% return. Another factor for Ceres has been smart execution. Over the past year, the firm’s begun converting years of research and development into tangible commercial deals.

A major milestone was the ramp-up of partnerships with players such as Doosan and Delta Electronics. With new deals announced regularly, investors are clearly excited about the revenue potential if this trend continues.

Finally, Ceres has been (and still is) a benefactor from the artificial intelligence (AI) data centre buildout. Ceres’ technology is increasingly being positioned as a clean, efficient solution for these sites. Given that many expect large-scale capex spending in this area to continue over the coming years, it looks like a major growth area for Ceres to target.

The outlook from here…

This is where things get a bit murky, from my perspective. On one hand, the long-term story does look compelling. If hydrogen scales the way many expect (and if Ceres continues to license its technology globally) the company could do very well. What I mean is that it has the potential to be a high-margin, asset-light machine. That could mean higher profits, and therefore a higher share price.

On the other hand, there are plenty of risks. Despite the soaring share price, Ceres remains loss-making, with negative earnings and a revenue base that doesn’t reflect the optimism from some investors.

In fact, the 2025 full-year results from March showed the operating loss widened from £31.1m to £47.6m.

The other big concern I have is that partnership deals are great, but the company actually needs to deliver on the promises over the coming year and beyond. That’s no easy feat. Based on the share price move, I think the best-case scenario has been factored into these deals. So if there are some hurdles, the stock could move lower fast.

Overall, I do like the company, but I think some are too optimistic about the revenue potential. Therefore, I’ll only consider buying if the stock returned to a more reasonable valuation.

The post This FTSE 250 stock’s up almost 1,000% in a year. What’s going on? appeared first on The Twelfth Magpie.

What does Ceres Power do?

Ceres Power’s a solid oxide fuel cell technology company. Its ultimate goal is to help sustain a clean, green planet by ensuring there’s clean energy everywhere in the world.

It has a rather unique business model. Instead of building its own products, it licenses its technology to other industrial companies.

What’s driving the share price?

As for why the stock’s hot right now, there are a few reasons. One is that the company has recently done some big deals.

In November, for example, it announced a licensing deal with Chinese firm Weichai Power (its largest shareholder) to help power data centres. Under this deal, Ceres will manufacture solid oxide fuel cells and stacks for stationary power systems in China, targeting artificial intelligence (AI) data centres, commercial buildings, and industrial applications.

Another reason is that sell-side analysts have been getting more bullish. Last month, for example, Goldman Sachs raised its share price target from 530p to 670p (after adding the stock to its European Conviction List in November).

Enthusiasm for AI infrastructure stocks is also no doubt driving the share price higher. Right now, investors are working their way down the AI supply chain, trying to find the next big thing (without much regard for valuations).

Ceres Power vs Rolls-Royce

It’s worth noting that there’s one key difference between Ceres Power and Rolls-Royce: profitability. The main reason Rolls-Royce shares have surged in recent years is that its profits have exploded (this has attracted institutional investors).

Ceres has no profits however, and it’s not expected to be profitable in the next few years. This adds risk from an investment perspective, and means that the share price strength may not be sustainable (and that it may not deliver Rolls-Royce-like returns).

An investment opportunity for growth hunters?

Are the shares worth a look despite this issue? Well, they could be, as a highly speculative AI-related growth play.

But to my mind, they’re very risky. Not only are there no earnings but the company’s track record in terms of growth is quite patchy (last year revenue fell 37%).

On top of this, we have a valuation that’s very high. The price-to-sales ratio‘s about 20 on a forward-looking basis and near 40 on trailing basis (there’s no price-to-earnings (P/E) ratio as we don’t have any earnings).

It’s worth noting here that the average price target is about 447p. That’s roughly 30% below the current share price.

One other thing worth mentioning is that late last year, the company was the subject of a scathing report from short seller Grizzly Research. It wrote that Ceres has a “flawed business model” and that it expects the stock to “fade away into obscurity”.

Given these risks, I won’t be buying the stock for my own portfolio. In my view, there are much safer growth stocks out there for me today.

The post Up 199% in 2026, is UK stock Ceres Power Holdings the new Rolls-Royce? appeared first on The Twelfth Magpie.