Ballard Power initiated with a Sector Perform at Scotiabank

Scotiabank analyst Justin Strong initiated coverage of Ballard Power with a Sector Perform rating and $7.25 price target. The manufacturer of hydrogen fuel cell membrane electrode assemblies, stacks, and modules is advancing a profitability-via-growth business model focused on increasing scale to improve gross margins, but the firm’s primary concern is "the company’s near-nil gross profits and negative earnings," Scotia said. However, it adds that it views the company’s current valuation as "unduly discounted."