Ballard Power Systems Inc Stock Forecast:
According to predictions made by 20 analysts, the average target price for Ballard Power Systems Inc’s stock over the next 12 months is USD 7.20, with an average rating of Hold. However, Stock Target Advisor‘s own analysis of the stock suggests a bearish outlook based on 2 positive signals and 5 negative signals. Currently, the stock price for Ballard Power Systems Inc is USD 4.97, which reflects a decrease of -5.87% over the past week, -19.32% over the past month, and -57.70% over the last year.
Analysts Coverage Change:
- Scotia Capital maintains a “Sector Perform” rating on Ballard Power Systems with a target price of $7.25
- CIBC World Markets maintains a “Neutral” rating with a target price of $5.25
- TD Securities maintains a “Hold” rating and lowers the target price to $5 from $6.50.
- BMO Capital Markets maintains a “Market Perform” and lowers the target price to $4.50 from $5.50.
- Susquehanna International Group maintains a “Neutral” rating and lowers the target price to $5.50 from $6.
Positive Fundamentals:
Ballard Power Systems is a company with a high market capitalization, which means that it is one of the largest entities in its sector, and is among the top quartile. This factor usually indicates that the company is more stable than smaller entities, as it has the ability to withstand economic and market fluctuations. Additionally, companies with high market capitalization tend to have greater resources to invest in research and development, which can lead to a competitive advantage.
Furthermore, Ballard Power Systems has exhibited superior risk-adjusted returns compared to its peers in the sector for a hold period of at least 12 months, and is in the top quartile. This means that the company has generated higher returns relative to the amount of risk it has taken on, which is an important consideration for investors. A strong track record of risk-adjusted returns can indicate that the company has a good management team, strong competitive position, and is well-positioned for long-term growth.
Negative Fundamentals:
Ballard Power Systems has exhibited high volatility in its total returns over the past five years, which is above the median for its sector. This means that investing in this stock requires a higher risk tolerance.
Furthermore, the company’s annual average total returns have been below median compared to its peers over the past five years. This is a concern because it shows that the company has not been able to perform as well as its competitors.
In addition, the stock is trading at a high price to cash flow ratio compared to its peers, indicating that it is overpriced. This could be a warning sign for investors who are considering buying the stock.
The company has delivered below median return on invested capital in the most recent four quarters compared to its peers, suggesting that its capital utilization is poor.
Finally, the company is highly leveraged, which is a red flag. However, it is important to also look at the news and the company’s management statements to see if the high leverage is due to aggressive growth plans.
FA Score (Fundamental Analysis):
The fundamental analysis of Ballard powers Systems is “Bearish” with a FA score of 2.9 out of 10, where 0 is very bearish and 10 is very bullish.
