In a report released today, Jeff Osborne from TD Cowen maintained a Sell rating on Ballard Power Systems (BLDP – Research Report), with a price target of $1.00.
Jeff Osborne has given his Sell rating due to a combination of factors impacting Ballard Power Systems. Despite entering the first quarter of 2025 with a record backlog and significant revenue growth anticipated in the latter half of the year, the company continues to face challenges with negative margins. The shift towards larger megawatt and higher-value products is expected to improve margins, but execution and delivery timing for key contracts in the rail and bus sectors remain critical to investor sentiment.
Additionally, while the company has a strong order book driven by transit wins, the revenue is heavily concentrated in the second half of 2025, with a significant portion expected in the fourth quarter. This timing, coupled with ongoing negative gross margins, poses risks. Although initiatives like Project Forge aim to reduce costs and improve production efficiency, these benefits are not expected to materialize until mid-year, leaving near-term financial performance under pressure.
According to TipRanks, Osborne is an analyst with an average return of -2.1% and a 37.37% success rate. Osborne covers the Technology sector, focusing on stocks such as Enphase Energy, First Solar, and Itron.
In another report released on April 17, Citi also downgraded the stock to a Sell with a $1.00 price target.