BMO Capital analyst Ameet Thakkar maintained a Sell rating on Ballard Power Systems (BLDP – Research Report) yesterday and set a price target of $1.20.
Ameet Thakkar has given his Sell rating due to a combination of factors impacting Ballard Power Systems. The company’s fourth-quarter results for 2024 highlighted a challenging year for the hydrogen fuel cell sector, with a significant decline in revenue compared to the previous year and falling short of both BMO and consensus expectations. Despite a record order intake, the company’s profitability is hindered by its inability to scale effectively, and there is a need for more evidence of sustained market adoption before a more favorable outlook can be considered.
Furthermore, while Ballard Power Systems has made progress in cost-cutting measures, these efforts have limited impact without achieving greater scale. The company’s restructuring initiatives and manufacturing improvements are positive steps, but the fixed production overhead costs remain a challenge. Although there is a strong order book, the potential for industry challenges and shipment delays into 2026, along with the need for further scaling, contribute to the cautious outlook. The target price has been lowered to $1.20 per share, reflecting these concerns.
In another report released yesterday, Wells Fargo also maintained a Sell rating on the stock with a $1.00 price target.
BLDP’s price has also changed moderately for the past six months – from $1.800 to $1.280, which is a -28.89% drop .
Questions or Comments about the article? Write to editor@tipranks.com