NEW YORK (TheStreet) -- Shares of Ballard Power Systems Inc. (BLDP) are higher by 9.95% to $2.32 on heavy volume in mid-morning trading on Monday, after the company announced it signed a $10 million agreement with both Nantong Zehe New Energy Technology and Guangdong Synergy Hydrogen Power Technology to provide its products to support the deployment of fuel cell powered buses in two cities in China.
Ballard Power will provide fuel cell power products and technology solutions for the support of 33 buses to be launched in the cities of Rugao and Yunfu.
The majority of the deal's value is expected to be recognized in 2015, Ballard said in a statement announcing the deal.
So far today, 3.11 million shares of Ballard Power have exchanged hands as compared to its average daily volume of 704,000 shares.
"We continue to see strong growth opportunities in China's mass transit market where fuel cells are increasingly being discussed as the next generation of clean propulsion. This demand is being driven by China's growing need for clean urban mass transit and air quality policies," Ballard Power CEO Randy MacEwen said in a statement.
Separately, 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 some concerns, 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. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."