what happened
In today’s issue of hydrogen fuel cell stocks, the shares of Plug power (NASDAQ: PLUG) inventory jumped 4.9% from EST, and Ballard Power Systems (NASDAQ: BLDP) zoom in 7.7% higher. Neither is too surprising, given the news yesterday.
But even Bloom Energy (NYSE: BE) stock is up 2.4% today, and it is kind of surprising.
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Approximately
Of the three fuel cell supplies, only Plug has any real news today. Yesterday, Plug announced that it will establish a joint venture with the French car manufacturer Renault to build fuel cell cars in Europe. In response, three separate Wall Street analysts have raised their price targets on the fuel cell manufacturer.
Today, both B. Riley Securities and Craig-Hallum predict that Plug shares (currently $ 71 and up) will end the year at $ 79. Both analysts recommend buying Plug on news from the new Renault JV, while Riley adds that he sees additional ‘strong catalysts on the horizon’ that could keep Plug’s power higher.
Analysts at HC Wainwright are even more optimistic, valuing Plug stock at $ 85 a share, reports TheFly.com, adding that Wainwright now considers Plug Power the “leading hydrogen and fuel cell game in the world.”
Now what
I happen to agree with the review. I still believe that fuel cell supplies are too expensive today – Plug Power included. But with the largest market capitalization and the deepest cash war of any fuel cell business, Plug Power is the worst worst stock in this sector.
At the same time, investors seem to see Ballard Power as attractive as well. It could be an enthusiasm for plug stock that turns into enthusiasm for all fuel cells, or it could be specifically an enthusiasm for Ballard’s announcement that he’s going to supply fuel cells for a passenger train project in Scotland.
Bloom Energy is the stranger to me. Unlike other fuel cell manufacturers, Bloom underwent a downgrade yesterday when Morgan Stanley predicted that the share would end at $ 34 per share in 2021. Since Bloom is already selling for $ 37, this means that the share price has a disadvantage of 8%. The reason why investors consider it positive for Bloom shares does not go beyond me.