TD Cowen analyst Jeff Osborne maintained a Sell rating on Ballard Power Systems (BLDP – Research Report) today and set a price target of $1.00.
Jeff Osborne’s rating is based on a combination of factors that highlight both positive and negative aspects of Ballard Power Systems’ current position. On the positive side, the company achieved a record order intake in the fourth quarter, with a backlog reaching $173.5 million, driven by strong bookings in the bus and rail sectors. This indicates a solid demand for Ballard’s products, particularly in North America and Europe, with significant orders from companies like Solaris and New Flyer for buses, and CPKC and Stadler for rail.
However, Osborne notes several challenges that contribute to the Sell rating. Despite the impressive backlog, Ballard Power Systems missed street expectations on both revenue and earnings, which raises concerns about its financial performance. Additionally, the broader hydrogen economy remains uncertain, with muted recovery signals, and the company faces challenging capital market conditions and potential tariffs. While there is a positive outlook for gross margin improvement in 2025, the company does not expect to achieve positive gross margins, which adds to the cautious stance on the stock.
In another report released today, Wells Fargo also maintained a Sell rating on the stock with a $1.00 price target.
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