The Globe and Mail reports in its Wednesday edition that Erica Lau at North Growth Management is keen on Ballard Power Systems. In a Globe special, Shirley Won writes that fuel cell developer Ballard will benefit from a growing demand for hydrogen-powered, heavy-duty electric vehicles, Ms. Lau says. For buses, trucks or trains, "lithium batteries don't have enough energy density to deliver the same range." The Vancouver-based company estimates that the market opportunity in heavy-duty vehicles will be more than $130-billion (U.S.) by 2030. Consensus analyst estimates suggest that Ballard's sales, which are mainly in Europe, China and California, will grow 37 per cent annually over the next five years. Ballard is not yet profitable, but is expected to scale up production and reduce costs so that hydrogen becomes more economic. Because its technology is disruptive, its stock is "difficult to value using traditional metrics" and is a better buy on pullbacks.
Over all, clean-energy stocks are getting a tailwind as politicians and governments pledge to cut carbon emissions and mitigate the negative impact of climate change.
Some names have already rallied in anticipation that Joe Biden win the Nov. 3 U.S. election.
© 2021 Canjex Publishing Ltd. All rights reserved.