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In a Monday report, analyst Michael Glen described 2021 as a “watershed second within the historical past of the hydrogen economy.” He expects an accelerating variety of hydrogen-related bulletins by corporations and nations concerning hydrogen expertise and its capability to wean the world off fuels that generate carbon dioxide.
Hydrogen fuel—whether or not burned or utilized in a gas cell—doesn’t emit greenhouse gases blamed for world warming. Whereas most hydrogen fuel is made utilizing pure fuel, a course of that produces dangerous emissions, hydrogen will be made by passing renewable electrical energy by means of water, which might not contribute to local weather change.
(ticker: NKLA) prompted U.S. traders to assume extra concerning the hydrogen financial system this previous summer season after its shares soared when the gas cell maker went public by merging with a special purpose acquisition company, or SPAC.
Nikola plans to construct a heavy-duty semi-truck, the type frequent on U.S. interstate highways, powered by electrical energy generated utilizing a hydrogen gas cell. Nikola additionally needs to construct and function hydrogen filling stations, benefiting from the necessity to refill gas tanks with hydrogen fuel. Nikola plans to make hydrogen through the use of electrical energy to separate water molecules.
After Nikola’s emergence, many extra hydrogen tasks had been introduced. Diesel engine maker
) hosted a hydrogen technology event.
Royal Dutch Shell
(VOLV.Sweden), and others fashioned a enterprise to speed up adoption of hydrogen fueled vehicles. Korea’s
(034730.Korea) invested $1.5 billion into fuel-cell expertise firm
(PLUG) this previous week, sending its top off 35%.
Raymond James’ Glen believes Ballard (BLDP) might announce one thing subsequent.
(2338.Hong Kong), Ballard’s largest shareholder, is elevating $2 billion in money for hydrogen tasks. “It’s clear to us that gas cells characterize a core element of [Weichai’s] progress technique over coming a long time,” wrote Glen. “Buyers don’t totally respect Weichai Energy’s place, market share, OEM relationships and general scale within the largest marketplace for business vehicles [and] buses globally.” OEM is brief for authentic tools manufacture and, on this case, refers to corporations making heavy-duty vehicles and buses in China.
Sooner than anticipated adoption of hydrogen tech in China means extra gross sales for Weichai, one thing that may profit Ballard as a key Weichai provider.
Raymond James’ Glen, consequently, upgraded shares of Ballard Monday—form of. Glen took his score from Outperform to Sturdy Purchase. Outperform and Sturdy Purchase are, primarily, each Purchase scores, so there isn’t actually a change in how Wall Avenue seems to view the inventory. But it surely reveals that he’s much more bullish on the inventory now than he was earlier than.
Wall Avenue likes Ballard inventory. Greater than 80% of analysts masking the corporate fee shares the equal of Purchase. The average Purchase-rating ratio for shares within the
Dow Jones Industrial Average
is about 57%.
Glen raised his Ballard target price to $40 from $28, pushing the common analyst goal worth for the top off about $1 to roughly $26 a share.
Ballard inventory closed Monday above $29 a share. Although analysts assume Ballard inventory is a Purchase, they’ve bother maintaining with share costs. That’s partly as a result of Ballard inventory had an incredible 2020, buoyed by rising pleasure for hydrogen gas applied sciences and their wider utility into transportation markets. Shares gained virtually 226% final yr. Shares are up one other 24% yr to this point in 2021.
Write to Al Root at [email protected]