Ballard Power Slides on BMO Downgrade Even as Management Pitches Fleet Expansion
Published on 10/27/2026 at 16:20 | Editorial boerse-global.de
Ballard Power Systems drew a sharply lower price target from BMO Capital, but the fuel-cell maker's stock refused to stay down. BMO cut its target to US$1.50 from US$2.10 while keeping an "Underperform" rating, with analyst Ameet Thakkar flagging questions over the company's planned investment in a fleet of hydrogen power units. The revision, reported by media outlets yesterday, came just days after Ballard's corporate forum on Thursday, where management laid out growth and margin ambitions.
The shares slipped 1.7% on the day of the downgrade, closing at €1.30. By today, sentiment had flipped: the stock was up 5.5%.
Financing Structure Draws Scrutiny
At the heart of BMO's caution is how Ballard intends to pay for the hydrogen power unit (HPU) fleet. The company has earmarked between $80 million and $120 million for the build-out and plans to fund it through asset-backed financing, targeting a loan-to-value ratio above 80%. BMO's concerns center on the funding, utilization and returns of that investment.
Ballard's chief executive has also discussed expanding beyond the transport sector following the GeoPura acquisition, according to media reports, pointing to hydrogen applications for data centers and the replacement of diesel generators.
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A Growth Blueprint Through 2028
The forum served as a platform for Ballard's medium-term targets. Management is aiming for average annual revenue growth of 30% across the next two fiscal years. On profitability, the company expects a gross margin above 20% in 2027, rising to more than 25% in 2028.
Adjusted EBITDA is slated to break even by the end of 2027, with profitability on that basis holding through the whole of 2028.
GeoPura Put the Units to Work
There is already a live deployment to point to. On October 21, Ballard reported that its subsidiary GeoPura supplied hydrogen power units to British entertainment and sporting events during the 2026 summer season, including the Boomtown Festival. The units are powered by Ballard technology.
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Investors will get their next hard data point on November 16, 2026, when Ballard holds a conference call to discuss its third-quarter 2026 operating results — a date the company announced on October 16.
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