Why are Plug Power, Ballard Power and (Even) Bloom Energy shares flying today?

What happened

In today’s edition of hydrogen fuel cell stocks gone wild, shares of Connect the power (NASDAQ: PLUG) the stock jumped 4.9% at noon EST, and Ballard Power Systems (NASDAQ: BLDP) zoom is 7.7% higher. Neither is too surprising, given yesterday’s news.

But even Bloom Energy (NYSE: BE) the stock is up 2.4% today, and that East a little surprising.

Image source: Getty Images.

So what

Of the three fuel cell stocks, only Plug has current news. Yesterday, Plug announced the creation of a joint venture with the French manufacturer Renault to build fuel cell vans in Europe. In response, three separate Wall Street analysts raised their price targets on the fuel cell maker.

As of today, B. Riley Securities and Craig-Hallum predict that Plug’s stock (currently at $ 71 and is changing) will end the year at $ 79. Both analysts recommend buying Plug on the news of the new Renault JV, while Riley adds that he sees “more powerful catalysts on the horizon” that could keep Plug’s power higher.

HC Wainwright analysts are even more bullish, valuing Plug stock at $ 85 a share, reports TheFly.com, adding that Wainwright now considers Plug Power the “world leader in hydrogen and fuel cells.” .

Now what

I agree with this assessment. I still believe that fuel cell stocks are unfortunately too expensive today – Plug Power included. But with the largest market cap and deepest war chest of any fuel cell company, Plug Power is by far the least worst stock in the industry.

At the same time, investors also seem to view Ballard Power as attractive. It could be enthusiasm for the Plug stock that is bleeding into enthusiasm for all things fuel cells, or it could be enthusiasm in particular about Ballard’s announcement yesterday that it will be supplying fuel cells. fuel cells for a pilot passenger train project in Scotland.

Bloom Energy is the strangest thing for me. Unlike other fuel cell makers, Bloom suffered a rating downgrade yesterday when Morgan Stanley predicted the stock will end 2021 at $ 34 a share. With Bloom already selling for $ 37, that implies an 8% drop in the share price. Why investors see this as a benefit to Bloom’s shares is beyond me.