Intel stock spikes after report of possible US government stake
Investing.com - CFRA maintained its Hold rating and $1.90 price target on Ballard Power Systems (NASDAQ:BLDP) on Monday, citing regulatory tailwinds despite lowered sales forecasts. According to InvestingPro data, the stock currently trades at $1.83, with analysis indicating the company is currently undervalued despite facing significant operational challenges.
The research firm’s price target represents a 6.3x multiple on its 2025 sales-per-share estimate of $0.30, which stands above Ballard’s three-year average of approximately 5x. CFRA reduced its 2025 sales projection by $4 million to $90 million and cut its 2026 forecast by $11 million to $116 million.
Ballard’s backlog decreased in the second quarter to $146 million, with its 12-month sales backlog at $84 million. CFRA notes this requires an additional $18 million in sales to reach its next-12-month sales view of $102 million, which it considers reasonable as uncertainty around the Omnibus Budget Bill of 2023 Amendment (OBBBA) diminishes.
The firm highlighted Ballard’s new restructuring program, which aims to reduce operating expenses by an additional 30% beyond the 30% reductions targeted by its existing program. Ballard has set a target of achieving positive cash flow by year-end 2027.
CFRA acknowledged regulatory support from the OBBBA, which extends Section 45-V (the hydrogen production tax credit) through year-end 2027 and Section 48-E (the fuel cell investment tax credit) through year-end 2035, while maintaining that "significant hydrogen market activity remains far off."
In other recent news, Ballard Power Systems Inc . announced its financial results for the second quarter of 2025. The company reported a loss per share of $0.08, which was slightly better than analysts’ expectations of a $0.09 loss per share. However, Ballard Power Systems’ revenue fell short of projections, coming in at $17.8 million compared to the anticipated $18.69 million. These developments were part of the company’s recent earnings call. The revenue miss was a significant point of discussion, as it did not meet market expectations. Analysts and investors will likely continue to monitor Ballard Power Systems for further financial updates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.