Shares digital

House broker Investec has reduced its revenue forecast for CMR Fuel Cells’ (CMF:AIM) 2008 earnings by 60% to £400,000 to reflect slower take-up of fuel cell technology. It has also scaled back the 12-month price target considerably to 80p from 245p. The shares in the company have fallen 76% in the past year to 36p. Full-year results for 2007 revealed a widening of pre-tax loss by 50% to £3 million. ‘Like many of the listed fuel cell stocks, CMR has suffered from the general antipathy surrounding the end markets and adoption story,’ says Investec analyst Chris Dyett. The company is trying to push fuel cell systems as a more environmentally friendly and efficient replacement to conventional batteries in portable electronic devices.

Shares says: Investec’s downgrade shouldn’t surprise as this is a realistic view of fuel cell players. This was never going to be about quick returns, so keep holding.