Ballard Power Systems: Roth Capital Raises PT to $1.8 from $1.25, Maintains Neutral

Ballard Power Systems: Roth Capital Raises PT to $1.8 from $1.25, Maintains Neutral

Ballard Power Systems (BLDP) has received a positive update from Roth Capital, which has raised its price target to $1.8 from $1.25, while maintaining a neutral rating [1]. The update comes amidst mixed financial results for the company's second quarter (Q2) 2025, which showed a narrowing of losses but continued unprofitability.

Ballard reported a net loss of $24.28 million for Q2 2025, a 22.8% improvement year-over-year (YoY), and a per-share loss of $0.08, down from $0.11 in the same period the previous year [1]. Despite the improved bottom-line performance, the company continues to face financial challenges, posting deficits for nine consecutive years in this fiscal quarter. The revenue grew by 11.5% YoY to $17.84 million, driven primarily by the rail segment, which contributed $7.17 million, followed by the bus segment with $8.83 million [1].

Roth Capital's analyst, who covers the company, highlighted the mixed performance of Ballard's Q2 results, noting that while the company exceeded earnings per share (EPS) forecasts, it fell short on revenue expectations [1]. The company's stock price reacted to the earnings announcement, dropping 1.67% in pre-market trading to $1.77, reflecting investor concerns over the revenue miss [2]. However, the stock has shown strong momentum over the past six months, with a 36.36% return, despite ongoing volatility [2].

Ballard Power Systems is targeting a cash flow-positive position by 2027, with a strategic focus on rail, marine, bus, and material handling markets [2]. The company is undergoing restructuring to enhance efficiency and expects to see significant cost reductions by 2026. Ballard's CEO, Marty T. Neese, emphasized the company's strategic direction, stating, "We are charting a course toward becoming a sustainable cash flow positive business by 2027" [2].

The update from Roth Capital reflects a cautious but optimistic view on Ballard's long-term prospects, given the company's ongoing efforts to improve its financial health and market position. The analyst's neutral rating suggests a balanced view of the company's performance, acknowledging both its progress and the challenges it faces in the competitive hydrogen sector.

References:
[1] https://www.ainvest.com/news/ballard-power-systems-2025-q2-earnings-narrows-losses-remains-unprofitable-2508/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-ballard-power-systems-q2-2025-sees-revenue-miss-stock-dips-93CH-4183418