Canadian clean energy stock Ballard Power Systems (TSE:BLDP) landed an exciting new deal for power cells, a long-term deal that should mean some solid cash flow for some time to come. Investors were clearly pleased, and sent Ballard shares surging up around 8% in Tuesday morning’s trading as a result.
Ballard’s new deal with Manufacturing Commercial Vehicles calls for it to supply around five megawatts worth of fuel cell engines over the next two years. Ballard and Manufacturing Commercial Vehicles have been working together since 2022 already, so the latest deal is just an expansion of the current relationship.
Ballard will supply 50 of its Fcmove-HD+ engines eventually, as the first part of the order calls for 35 units to be shipped. All of the engines are expected to be in Making Commercial Vehicles’ hands by the end of 2026, reports note. This just adds on to Ballard’s impressive capability in the market, as it currently has a hand in over 1,800 buses worldwide with over 200 million miles cumulatively to their credit.
Quiet for a While
There had not been much news out about Ballard lately, though it came off a pretty major December. Back then, it had made a deal with the California Department of Transportation for Fcmove-HD+ engines as well. It had even set up a deal with Canadian Pacific Kansas City (CP) for 98 fuel cell engines for use throughout the North American freight operation.
But thanks to this deal, it becomes clear that Ballard’s impressive December sales were not a flash in the pan, nor an end-of-year spend-it-while-you’ve-got-it fluke. Ballard may be able to parlay this latest sale into further sales, particularly given its impressive numbers in cumulative mileage total.
Is Ballard Power Systems a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:BLDP stock based on one Buy assigned in the past three months, as indicated by the graphic below. After a 59.04% loss in its share price over the past year, the average TSE:BLDP price target of C$7.22 per share implies 304.32% upside potential.
