Jefferies Keeps Hold Rating on Ballard Power Systems

Jefferies analyst Martin Comtesse reiterated a Hold rating on Ballard Power Systems with shares closed at $2.02. Comtesse has an average return of -2.1% and a 41.35% success rate on recommended stocks. The word on The Street suggests a Moderate Sell analyst consensus rating with a $1.68 average price target, representing a -16.83% downside. Based on recent earnings release, the company reported a quarterly revenue of $17.84 million and a GAAP net loss of $24.28 million. Corporate insider sentiment is negative with an increase of insiders selling their shares.

In the rapidly evolving landscape of AI and cloud computing, data center infrastructure remains a critical area of investment. Zacks Equity Research analysts have identified three key players in this sector, recommending them for long-term growth. These companies are Vertiv Holdings (VRT), Arista Networks (ANET), and Astera Labs (ALAB).

Vertiv Holdings (VRT)

Vertiv Holdings, a leading provider of critical digital infrastructure and services, is benefiting from the surging demand for AI-enabled data centers. With a robust product portfolio spanning thermal systems, liquid cooling, and AI infrastructure, VRT is strategically expanding its capacity to support the growing AI market. The company's partnership with NVIDIA Corp. (NVDA) is a significant catalyst, with VRT aiming to stay ahead of NVIDIA's GPU generations to provide efficient power solutions for next-generation AI data centers.

Arista Networks (ANET)

Arista Networks, a cloud networking solutions provider, is well-positioned to capitalize on the AI infrastructure boom. With its AI-focused strategy and modern networking platforms, ANET offers best-in-class products with resilience, zero-touch automation, and telemetry. The company's EOS Smart AI Suite and Arista AVA enhance AI job monitoring and network security, providing seamless integration with third-party applications.

Astera Labs (ALAB)

Astera Labs, a developer of connectivity solutions for cloud computing and AI applications, is uniquely positioned to gain from the AI Infrastructure 2.0 transition. The company's Intelligent Connectivity Platform, with hardware and software components, supports scale-up and scale-out connectivity. ALAB expects significant market growth from its Scorpio P-Series switches and Aries 6 retimers, with Scorpio revenues accounting for over 10% of total revenues in 2025.

These companies are recommended by Zacks analysts with Zacks Rank #1 (Strong Buy) or #2 (Buy), indicating their long-term growth potential. Investors should consider these picks for their AI-focused data center and cloud infrastructure portfolios.

References:
[1] https://www.tradingview.com/news/zacks:1f595713b094b:0-the-zacks-analyst-blog-highlights-vertiv-arista-networks-astera-labs-nvidia-ballard-power-systems-and-intel/