NEW YORK (TheStreet) -- Ballard Power Systems (BLDP) fell 4.85% to $5.69, down 29 cents from its previous close of $5.98, on Friday after peer company Plug Power (PLUG) suffered a pair of analyst downgrades.
Roth Capital downgraded Plug Power to "neutral" from "buy" despite raising the target price to $8 from 80 cents. The firm said the company's fourth quarter results, which it announced Thursday morning, indicate the momentum of its bookings is slowing. The firm contends that Plug Power's bookings could still grow at a historic rate, but a large portion of that growth may already have been reflected in the stock. The firm also cautions that some of Plug Power's shipments could be delayed because many of its products will be sent to customers that must still add hydrogen infrastructure, which could take longer than expected.
Cowen, meanwhile, downgraded the stock to "market perform" from "outperform." The firm noted the company's sales should increase this year thanks to strong bookings and gross margins should increase as volumes increase and some costs decrease. But Cowen believes the stock's valuation looked full before trading Friday.
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TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$0.87 million or 63.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 46.06% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.13% is in-line with the industry average.
- This stock has increased by 287.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BLDP do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- BALLARD POWER SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, BALLARD POWER SYSTEMS INC continued to lose money by earning -$0.21 versus -$0.47 in the prior year.
- You can view the full analysis from the report here: BLDP Ratings Report