Citi Analyst Initiates Pair Trade - Long Plug Power Versus, Short Ballard Power

  • Citi analyst P.J. Juvekar downgraded Ballard Power Systems Inc BLDP to Neutral from Buy with an unchanged price target of $19.
  • Juvekar sees risk from slower adoption of fuel cells, policy uncertainty in China, and higher near-term costs. Ballard Power's sales growth inflection is likely deferred until 2023.
  • P.J. Juvekar raised the price target on Plug Power Inc PLUG to $56 from $35 and maintained a Buy rating on the shares.
  • Juvekar sees "several catalysts" for the company, including the ramp-up of its green hydrogen network beginning in the second half of 2022 and improving fuel gross margins.
  • Juvekar believes Plug Power will outperform Ballard Power in the near term with its "hydrogen ecosystem" strategy providing hydrogen fuel, electrolyzer, and fuel cells.
  • The analyst initiates a pair trade of long Plug Power versus a short of Ballard Power.
  • Also read, Plug Power Stock Flies Higher After Breaking Out From Pennant Pattern: What's Next?
  • Price Action: BLDP shares are trading lower by 4.88% at $16.97, while PLUG is higher by 1.51% at $43.76 during the premarket session on Wednesday.
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