Brokerages cut Ballard Power's PT citing margin pressure

Ballard Power Systems

20/03/2023 18:09

** At least two brokerages cut PT on U.S.-listed shares of
Canada-based clean energy company Ballard Power Systems Inc
 BLDP.TO   BLDP.O 
    ** BMO Capital Markets cuts PT to $4.5 from $5.5 and
maintains "market perform" rating, while TD Securities lowers PT
to $5 from $6.5 and maintains "hold" 
    ** BLDP's ongoing evolution toward higher volume product
sales away from consulting projects will take time - BMO
    ** BMO "somewhat disappointed" by Q4 revenue and gross
margin; brokerage expects decline in gross margins to persist
into 2023
    ** TD Securities forecasts deterioration in BLDP's net cash
position for next two years due to margin pressure and high
spending
    ** Five of 26 brokerages rate the stock "buy" or higher, 18
"hold", 3 "sell" or lower; median PT is $6.25 - Refinitiv
    ** Company's U.S. shares up ~5% YTD

 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))