In a research report released Wednesday, Roth Capital analyst Matt Koranda maintained a Buy rating on shares of Hydrogenics Corporation (USA) (NASDAQ:HYGS) and reduced the price target from $15 to $11, which implies an upside of 50% from current levels. The decreased price target comes after the company released its second-quarter results, posting revenues of $7.4 million, compared to Roth Capital’s estimate of $10 million.

Koranda commented, “Despite near-term lumpiness in revenues, visibility is improving into key catalysts in H2’15 and H1’16, in our view. On the MWscale power generation front, the first MW of HYGS’s Kolon shipment is being commissioned and we should potentially see a follow-on 9MW order roughly 90 days post commissioning. Larger-scale power-to-gas projects in HYGS’s pipeline continue to mature, and regulatory catalysts in Europe may be on the horizon in 2016 that could better incentivize commercial projects in the long-run.”

Furthermore, “We continue to view our 2016 estimates as reasonable, even without major wins on the power-to-gas front. We keep Onsite Generation revenue flat YoY in 2016 and believe our forecast can be met primarily through execution on hydrogen stations and industrial installations. We do note that our 2016 estimate in Power Systems relies in part on execution on a portion of the potential 9MW Kolon order.”

Bottom line: “Despite the near-term setbacks, we continue to see potential wins in H2’15/H1’16 that should add to backlog and drive growth in 2016. We’re lowering our PT to acknowledge execution risk, but we remain constructive given multiple opportunities to build backlog.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Koranda has a total average return of 0.0% and a 37.7% success rate. Koranda has a -40.6% average return when recommending HYGS, and is ranked #2645 out of 3731 analysts.

All the 3 analysts polled by TipRanks rate Hydrogenics stock a Buy. With a return potential of 140.4%, the stock’s consensus target price stands at $17.67.

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