H.C. Wainwright: Time To Buy Ballard Power
posted on
Sep 03, 2015 08:02PM
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In a report published Thursday, H.C. Wainwright analyst Amit Dayal assumed coverage of Ballard Power Systems Inc. (USA) (NASDAQ: BLDP) with a Buy rating and a price target of $2.50.
Ballard Power, a manufacturer of fuel cell products based on Proton Exchange Membrane or PEM fuel cell technology, recently announced the acquisition of Protonex Technology Corporation. The acquisition will expand Ballard Power's portfolio to include Solid Oxide Fuel Cells or SOFC.
"Protonex will also bring with it the power management technology that is expected to enable integration of Ballard's fuel cells with solar and storage technologies. The acquisition also bolsters its presence in the military (portable and wearable devices) and government sectors," Dayal wrote.
Dayal said further that Ballard Power could continue to seek additional acquisition opportunities in order to expand its portfolio of products and to gain an entry into new market verticals.
The 1Q15 sale of the IP portfolio of United Technologies Corporation (NYSE: UTX) by Ballard Power had improved the latter's financials. Dayal added, "We believe that the company could be opportunistic and utilize its strong balance sheet to diversify its portfolio of offerings and ramp revenue growth."
The analyst expects "deeper penetration of core markets" to drive a revenue CAGR of more than 20 percent from 2015 to 2023, and help the company reach operating profitability in 2017. "As a result we believe the stock is currently undervalued," the report stated.
Latest Ratings for BLDPAug 2015 | H.C. Wainwright | Assumes | Buy | |
Jul 2015 | H.C. Wainwright | Initiates Coverage on | Buy | |
Feb 2015 | Sidoti & Co. | Downgrades | Buy | Neutral |
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I actually think this is the correct call here... BLDP and PLUG in my opinion... Also FCEL has announced a 100% expansion.