FBR Weighs in on Ballard Power Systems Inc. (USA) (BLDP) Following Japanese Distribution Agreement

The distribution agreement is just the start of Ballard's expansion into the Japanese market, says FBR

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) could very well unlock the Japanese market with its new distribution agreement with Toyota Tsusho Corporation, the trading arm of the Toyota Group, for Ballard’s fuel cell products sold in Japan.

The clean tech firm can take advantage of the fact Japan clearly is invested in developing hydrogen as a fuel source, with Japan devising a national growth strategy to launch fuel cell buses and forklift trucks sometimes this year. Driscoll highlights Toyota Tsusho for its fixed and mobile hydrogen fuel stations already in place in Tokyo, lending it to be an excellent partner for BLDP.

Driscoll comments, “While we do not see any near-term financial impact, we view the agreement as the start of Ballard’s expansion into the Japanese market. There are several potential stationary and mobile applications that could steer the developing relationship in multiple ways. For example, Ballard and Toyota could develop stationary applications such as for backup power or mobile applications like fuel cell electric vehicles (FCEVs).”

Especially as BLDP nears a formal collaboration with Broad-Ocean Motor, expected to close third-quarter, Driscoll finds Ballard very “on track.” Worthy of note, Broad-Ocean would invest $23.3 million for 17.25 million common Ballard shares with a two-year lock-up as the two corporations work to develop new fuel cell technologies for bus and commercial vehicles.

In light of this, FBR analyst Carter Driscoll reiterated an Outperform rating on shares of BLDP with a $3.00 price target, which represents just under a 49% increase from where the stock is currently trading.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Carter Driscoll is ranked #4,002 out of 4,122 analysts. Driscoll has a 19% success rate while facing a loss of 19.5% in his annual returns. When recommending BLDP, Driscoll loses 26.7% in average profits on the stock.

TipRanks analytics exhibit BLDP as a Buy. 100% of analysts polled in the last 3 months rate a Buy on BLDP. The 12-month average price target stands at $2.75, marking a 36% upside from where the shares last closed.

Recommended Article: FBR Upgrades Ballard; Sees 44% Upside for the Stock

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