Ballard Power price target lowered to $4.50 from $5 at National Bank

National Bank analyst Rupert Merer lowered the firm’s price target on Ballard Power to $4.50 from $5 and keeps a Sector Perform rating on the shares. The company’s Q4 gross margins came in at ($10.2M), below the firm’s ($3.3M) estimate driven by non-cash inventory provisions, though without the provisions, gross margin in Q4 would have come in at (1%), showing the progress that Ballard Power has made with its product cost-reduction initiatives, the analyst tells investors in a research note. National Bank added that Ballard Power’s order backlog had dipped largely due to a single customer experiencing liquidity issues, though it is supported by the company’s bus segment which is growing its relationship with key accounts like Solaris and New Flyer.