Ballard Power Cut to Sell at TD Cowen on Slower Market Adoption, Continued Cash Losses
Ballard Power Systems Shares Target Cut to $2 from $3.25
Despite Slow Market Adoption and Policy Uncertainty, Ballard Ended the Quarter with $678 Million in Cash
Ballard Power Systems Inc. (BLDP) has been downgraded to Sell from Hold by TD Cowen analyst Paul Cheng, who cited slower market adoption and continued cash losses as the reasons for the downgrade. Cheng lowered his price target on the stock to $2 from $3.25.
Cheng noted that Ballard's revenue growth has been below expectations due to slower-than-anticipated adoption of its fuel cell technology in the automotive and other markets. He also highlighted Ballard's continued cash burn, which reached $29 million in the second quarter of 2024.
Cheng's downgrade comes despite Ballard ending the second quarter with $678 million in cash. However, Cheng believes that the company will need to raise additional capital in the future to fund its operations and invest in new technologies.
Ballard Power Systems is a leading developer and manufacturer of proton exchange membrane (PEM) fuel cells. The company's fuel cells are used in a variety of applications, including backup power, marine propulsion, and motive power.
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