Ballard Power Systems "underperform"

03/28/05 - Fraser Mackenzie

NEW YORK, March 28 (newratings.com) - Analyst Jonathan Hykawy of Frazer Mackenzie reiterates his "underperform" rating on Ballard Power Systems (BLDP). The 12-month target price is set to $4.

In a research note published this morning, the analyst mentions that DaimlerChrysler has partnered with Ballard Power Systems to launch PEM fuel cell based cars by 2012. According to the analyst, the project would involve the installation of 450 new nuclear reactors across Europe at the cost of $1.5 billion per reactor, in addition to the transportation of hydrogen to filling stations and modifications at each station. Frazer Mackenzie believes that the project is not economically viable.