Ballard Power Systems (NASDAQ:BLDP)(TSE:BLDP) has inked a significant deal with Solaris Bus & Coach, a prominent European bus manufacturer. Under the long-term agreement, Ballard will supply 1,000 hydrogen fuel cell engines to Solaris for the European transit bus market, extending through 2027. This consolidated order represents the largest order of fuel cell engines in the company’s history. Following this announcement, BLDP shares jumped by 17.6% on Monday, April 1.
The agreement consolidates Solaris’ existing orders for around 300 fuel cell engines, incorporating after-market and extended warranty services. It also includes a fresh commitment for approximately 700 more fuel cell engines and related after-market extended warranty services.
In a separate development, Ballard disclosed securing a $54 million investment tax credit from the U.S. Internal Revenue Service. Funded under the Inflation Reduction Act, Ballard plans to use the tax credits to build a new fuel cell Gigafactory in Rockwall, Texas.
Is BLDP Stock a Good Buy?
BLDP’s zero-emission fuel cell products position it well to capitalize on the ongoing shift towards clean energy. However, BLDP stock is down about 41% in one year, reflecting an 8% decline in its 12-month order book at the end of the fourth quarter of 2023.
BLDP stock has two Buy, nine Hold, and three Sell recommendations for a Hold consensus rating. The analysts’ average price target on BLDP stock of $4.39 implies a 34.25% upside potential.
