Is BLDP stock a buy right now?

Following the company’s fourth quarter results, Raymond James analysts Michael Glen has cut his price target on Ballard Power (Ballard Power Stock Quote, Chart, News, Analysts, Financials NASDAQ:BLDP).

On March 13, BLDP reported its Q4 and fiscal 2024 results. The company posted an Adjusted EBITDA loss of $36.0-million on revenue of $24.5-million, down 48% year-over-year.

“2024 was a tough year for the hydrogen and fuel cell industry,” CEO Randy MacEwen said. “Amidst prolonged policy uncertainty, there was a multi-year push-out in the development of hydrogen projects and the deployment of fuel cell applications. With this backdrop, compounded by a difficult funding environment, an industry rationalization is underway. Our Q4 and full-year 2024 financial results reflect the industry challenges. Q4 revenue was $24.5 million, down 48% compared to Q4 2023. Full-year revenue of $69.7 million was down 32%, although we had a standout year in our Bus vertical, with revenue growth of 51%. Q4 gross margin improved by 9 points year-over-year to (13%), while full-year gross margin of (32%) was 11 points lower than in 2023. Q4 cash operating costs1 decreased by 6% year-over-year as a result of restructuring activities initiated in September, with significant further reductions expected in 2025.”

As reported by the Globe and Mail, Glen March 14 reiterated his “Market Perform” rating on BLDP while chopping his price target from $2.50 to $2.00.

“Exiting 4Q24, Ballard remained well capitalized with $604-million in cash and equivalents, which equates to $2.02 per share,” the analysts wrote. “There is no debt, and the company is not expected to seek financing in the short to medium term. That said, the stock currently trades at 62 per cent of cash per share which should help provide some perspective of the value investors are assigning to the business and operations. In that regard, we believe if the industry slow down continues to be much longer and more protracted, Ballard will take additional steps to control its cash burn.”