Shares of fuel cell company Ballard Power Systems (NASDAQ:BLDP) (TSE:BLDP) have been soaring for two consecutive days and are currently up about 30% for the week so far. The driving force behind this uptrend is the company’s announcement of innovative manufacturing technology to cut costs and boost production capacity for its next-generation graphite bipolar plates.
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Following the successful development of a next-gen graphite bipolar plate and “an expansion of membrane electrode assembly (MEA) manufacturing capacity,” the company is now poised to broaden its plate production.
Ballard’s plan is to cut fuel cell production costs by up to 70% by late 2025, hoping to reach the Department of Energy’s cost target of $5 per kW for electricity generation using its fuel cells. This cost reduction ambition has investors excited about Ballard’s financial future, as the company has been consistently unprofitable for many years.
Further, the new manufacturing technology is expected to offer significant environmental benefits by reducing energy and water consumption during production, in line with Ballard’s commitment to ESG initiatives. As Ballard invests around $18 million in bipolar plate manufacturing between 2023 and 2025, the firm anticipates a ~10-fold increase in its plate manufacturing capacity, aiming to better serve its heavy-duty mobility markets.
Is BLDP Stock a Buy, According to Analysts?
According to analysts, BLDP stock comes in as a Hold based on two Buys, eight Holds, and one Sell rating assigned in the past three months. The average BLDP stock price target of C$8.13 implies 9.5% upside potential.
