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Ballard Power Systems (NASDAQ:BLDP) -8.2% in Wednesday’s trading after BMO Capital downgraded the stock to Underperform from Market Perform with a $4.25 price target, trimmed from $4.50, saying it will take longer than peers for the company to move to positive gross margins.
“The inflection to positive gross margins and EBITDA remain further out in time (2025 and 2028, respectively),” reflecting the time needed for larger fleets to transition to towards hydrogen, BMO’s Ameet Thakkar wrote.
The analyst also said his downgrade reflects in part a tactical element, as Ballard (BLDP) shares have outperformed its primary hydrogen and fuel cell comparable stocks Bloom Energy and Plug Power after the stock surged by 24% heading into today’s investor event.
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