- Ballard Power's (BLDP -5.5%) stock price target is cut to $2.75 from $3 at Cowen following disappointing Q4 earnings and revenues.
- While Q4 revenue of $15.6M was flat, the firm notes that adjusting BLDP's 19% gross margin for a $3.5M warranty provision puts the number in single digits; BLDP management says Q4 is not an indicative run rate, even when adjusted, but Cowen is concerned with the trending rate.
- The firm says it still sees long-term compound average revenue growth above 15% but due to depressed margins, an uptick in operating expense expected for 2015, and a lack of visibility for telecom backup, it finds the stock fairly valued.