In a research report released Friday, FBR analyst Carter Driscoll initiated coverage on shares of Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), with a Market Perform rating and price target of $1.50, which implies an upside of 13% from current levels. The analyst believes that while the company is undergoing a strategic shift to become a more diversified clean technology company in an effort to reinvigorate top-line growth and attain profitability, the stock appears fairly valued.
Driscoll wrote, “Revenue growth stalled over the past two years, and we believe this process of reinvigorating revenue growth will take some time and may include additional M&A. We believe Ballard is on the right path and expect that a deeper penetration of core markets, along with a commitment to cost reductions, should drive more than a 35% revenue CAGR in 2015–2017E and help Ballard reach operating profitability in 2H17. But we believe the stock currently reflects some of these positive factors, and absent unforeseen customer wins or contract awards, we believe the stock is close to fully valued.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Carter Driscoll has a yearly average return of -21.1% and a 20.0% success rate. Driscoll has a -37.5% average return when recommending BLDP, and is ranked #3544 out of 3640 analysts.