UBS has revised its price target for Ballard Power (BLDP, Financial), reducing it from $2 to $1.40 while maintaining a Neutral rating on the company's stock. This adjustment reflects the firm's ongoing assessment of Ballard Power's market position and potential valuation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Ballard Power Systems Inc (BLDP, Financial) is $1.85 with a high estimate of $5.00 and a low estimate of $1.00. The average target implies an upside of 36.77% from the current price of $1.35. More detailed estimate data can be found on the Ballard Power Systems Inc (BLDP) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Ballard Power Systems Inc's (BLDP, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ballard Power Systems Inc (BLDP, Financial) in one year is $5.44, suggesting a upside of 302.96% from the current price of $1.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ballard Power Systems Inc (BLDP) Summary page.
BLDP Key Business Developments
Release Date: May 06, 2025
- Revenue: $15.4 million, up 6% year-over-year.
- Bus Vertical Revenue: Increased by 41%, contributing 81% of Q1 revenue.
- Fuel Cell Product Sales Revenue: Made up 94% of total revenue.
- Engine Shipments: Up 31%, representing 14 megawatts of fuel cell deliveries.
- Gross Margin: Negative 23%, but improved by 14 points compared to Q1 2024.
- Total Operating Expenses: $25.5 million, down 31% year-over-year.
- Cash Operating Costs: $23.2 million, down 22% year-over-year.
- Capital Expenditures: $2.7 million, down 64% compared to Q1 2024.
- Order Backlog: $158 million, with a 12-month order book of $92.4 million.
- Cash Position: $576.7 million, with no debt.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ballard Power Systems Inc (BLDP, Financial) reported a 6% increase in Q1 2025 revenue compared to the previous year.
- Engine shipments rose by 31%, indicating strong demand for Ballard's products.
- Gross margin improved by 14 points, reflecting better cost management and operational efficiency.
- Operating expenses decreased by 31%, showcasing the positive impact of the corporate restructuring initiated in 2024.
- The company ended Q1 with a strong cash position of $576.7 million and no debt, highlighting financial stability.
Negative Points
- Q1 2025 growth margin remained negative at 23%, indicating ongoing challenges in achieving profitability.
- Order intake in Q1 was soft compared to the record new order intake in Q4 2024, suggesting variability in demand.
- The company faces pressure on sales prices, particularly in the China market, impacting revenue potential.
- Ballard Power Systems Inc (BLDP) continues to experience negative gross margins due to low revenue absorption against manufacturing overhead costs.
- The transition from customer trials to higher volume deployments remains slow, affecting market adoption and revenue growth.
