What happened
In today’s edition of the stockpile of hydrogen fuel cells going crazy, Plug Power (NASDAQ: PLUG) the stock rose 4.9% from midday EST, and Ballard Power Systems (NASDAQ: BLDP) is expanding 7.7% higher. None of them are very surprising, given yesterday’s news.
But even Bloom Energy (NYSE: BE) the stock is up 2.4% today, and that It’s kind of surprising.
Image source: Getty Images.
And
Of the three fuel cell stocks, only Plug has real news today. Yesterday, Plug announced that it will form a joint venture with the French automaker Renault to build fuel cell vans in Europe. In response, three separate Wall Street analysts raised their price targets for the fuel cell manufacturer.
As of today, both B. Riley Securities and Craig-Hallum predict that Plug’s shares (currently at $ 71 and change) will end the year at $ 79. Both analysts recommend buying Plug after news of the new Renault JV, while Riley adds that he sees “additional strong catalysts on the horizon” that can keep the Plug’s power higher.
Analysts at HC Wainwright are even more optimistic, valuing Plug’s shares at $ 85 per share, reports TheFly.com, which adds that Wainwright now considers Plug Power the “world’s leading hydrogen and fuel cell game”.
What now
I happen to agree with that assessment. I still believe fuel cell stocks are terribly overpriced today – Plug Power included. But with the largest market capitalization and the deepest cash warfare of any fuel cell company, Plug Power is by far the smallest share in this sector.
At the same time, investors also seem to find Ballard Power attractive. This could be enthusiasm for Plug’s stock turning into enthusiasm for all things fuel cell, or it could be enthusiasm specifically about Ballard’s announcement yesterday that he will supply fuel cells for a pilot passenger train project in Scotland.
Bloom Energy is strange to me. In contrast to the other fuel cell manufacturers, Bloom suffered a rating downgrade yesterday, when Morgan Stanley predicted the stock would end in 2021 at $ 34. With Bloom already selling for $ 37, this implies a fall of 8% for the stock price. Why investors are taking this as a positive for Bloom’s shares is beyond me.