FormerXBC Inc XEBEQ

RE:RE:RE:RE:TD

[NorthCountry]

Target Price and Rating Changes: We are increasing our target price for Xebec Adsorption (XBC-T) to $17.50 (from $12.50 previously) with an unchanged BUY rating and are moving Ballard Power (BLDP-Q) to HOLD rating (from Speculative Buy previously) with an increased target price of US$40.00 (from US$27.00 previously) in a concurrently published Action Note. Importantly, Ballard's shareprice performance has been incredibly strong over the past few months and note that our revised target price of US$40.00 matches the Street-high for the name. Although both Ballard and Xebec have meaningful exposure to the hydrogen macro, we believe that there is a significant disconnect in valuation between the two names and ultimately view Xebec as a better relative call for thematic hydrogen sector exposure at this time. For investors who wish to learn more about Xebec and its recent acquisition of HyGear, a global leader in onsite hydrogen production, we refer investors to our recently published Company Insights report for more details (full report).