In a research report issued Tuesday, FBR analyst Carter Driscoll upgraded shares of Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) to an Outperform (from Market Perform), while doubling the price target to $3.00 (from $1.50), representing a 44% upside from where the stock is currently trading.
The analyst provided four main reasons for the upgrade: “(1) Strategic collaboration with Zhongshan Broad-Ocean Motor opens up Chinese market; (2) 5-year, $168 million order with Synergy to provide MEAs for fuel cell stacks and establish local fuel cell stack production; (3) partial sale of telecom backup power assets removes a margin drag, plus an order for the remaining hydrogen assets; and (4) strengthens the balance sheet.”
Driscoll wrote, “We are upgrading Ballard to an Outperform following a series of orders, deals, and investments that make us more confident that it is becoming a more diversified, and eventually profitable, alternative energy company. Most recently, Ballard signed deals with two Chinese OEMs that position the company with local Chinese partners, production and market access in what is by far the largest market for heavy-duty, fuel cell electric vehicles.”
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 -18.5% and a 19% success rate. Driscoll has a -34.6% average return when recommending BLDP, and is ranked #3974 out of 4087 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Ballard Power stock a Buy, while 1 rates the stock a Hold. With a return potential of 7.5%, the stock’s consensus target price stands at $2.23.