Citi analyst Vikram Bagri has downgraded Ballard Power Systems (BLDP, Financial), shifting the stock rating from Neutral to Sell. The price target for the company has been reduced from $1.50 to $1. This revision reflects concerns about the broader obstacles confronting the green hydrogen sector.
According to the analyst, Ballard Power is facing multiple challenges that could hinder its growth prospects. These include uncertainties surrounding tax credits and delays in existing funding. Additionally, there have been postponements in project financing and increasing competition from more cost-effective technologies and well-established industry players.
Furthermore, vulnerabilities among some of Ballard's customers are adding to the pressures on the company. All these factors combined create a grim outlook for the widespread adoption of hydrogen in the trucking sector, as noted by Citi.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Ballard Power Systems Inc (BLDP, Financial) is $1.90 with a high estimate of $5.00 and a low estimate of $1.00. The average target implies an upside of 58.63% from the current price of $1.20. More detailed estimate data can be found on the Ballard Power Systems Inc (BLDP) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Ballard Power Systems Inc's (BLDP, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ballard Power Systems Inc (BLDP, Financial) in one year is $5.88, suggesting a upside of 390% from the current price of $1.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ballard Power Systems Inc (BLDP) Summary page.
