JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - TD Cowen maintained its Sell rating and $1.00 price target on Ballard Power Systems (NASDAQ:BLDP) following the company’s recent operational expense reduction announcement. According to InvestingPro analysis, the stock appears undervalued despite its challenging market position, with the stock trading at 0.83 times book value.
The hydrogen fuel cell company announced on July 31 a 30% operational expense reduction, which follows a similar cut implemented on September 12, 2024, under previous leadership. InvestingPro data reveals the company is quickly burning through cash, with negative free cash flow of $133.5 million in the last twelve months.
TD Cowen noted several positives, including the new CEO’s fresh approach to portfolio evaluation, expense management, and disciplined pricing strategies. The company is reportedly shifting focus toward bus, rail, and marine applications rather than trucks, which management views as a market opportunity beyond 2030. With gross profit margins at -28.55% and revenue declining 31.77% year-over-year, this strategic pivot comes at a crucial time.
The research firm expressed concerns about insufficient details regarding restructuring charges and specific plans for achieving the 30% operational expense reduction by 2026 compared to the first half of 2025.
TD Cowen indicated investors need reassurance that Ballard can maintain its technology development and cost reduction initiatives while waiting for viable fuel cell applications to materialize in the market.
In other recent news, Ballard Power Systems reported its financial results for the second quarter of 2025. The company posted an earnings per share of -$0.08, which was slightly better than the expected -$0.09. However, revenue came in at $17.8 million, falling short of the anticipated $18.69 million. In light of these results, CFRA maintained its Hold rating on Ballard Power Systems, with a price target of $1.90. The research firm cited regulatory tailwinds but adjusted its sales forecasts downward. CFRA reduced its 2025 sales projection to $90 million and its 2026 forecast to $116 million. These developments come amid Ballard Power Systems’ ongoing restructuring efforts.
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