On Wednesday, BMO Capital Markets adjusted its outlook on Ballard Power Systems (NASDAQ:BLDP), a prominent fuel cell manufacturer. The firm's analyst decreased the price target for the company's shares to $2.85 from the previous target of $3.00. Despite the change, the analyst maintained an Underperform rating on the stock.
Ballard Power reported a reversal in its backlog contraction, with an expansion of $50 million in backlog and $64.7 million in bookings. Additionally, the company's 12-month order book grew by $13 million, reaching a total of $79.7 million. This growth in orders was anticipated, according to the firm.
The first quarter is traditionally a weaker period for Ballard Power, and this year was no exception. The company's total revenues came in at $14.5 million, falling short of both the firm's and the consensus estimates, which were at $15.2 million and $17.6 million, respectively. Ballard's gross margin also did not meet the expectations set by the firm and consensus estimates.
However, there was a silver lining as the company's EBITDA performance was better than what BMO Capital Markets had forecasted. Despite this, the firm decided to lower the price target on Ballard Power Systems. The decision reflects a cautious stance as the firm awaits further developments in the mobility market, which is still in its early stages of growth.
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