FormerXBC Inc XEBEQ

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Xebec Adsorption Inc designs, engineers, and manufactures products that are used for purification, separation, dehydration, and filtration equipment for gases and compressed air. The company operates in three reportable segments: Systems, Corporate and other, and Support. Its product lines are natural gas dryers for natural gas refueling stations, compressed gas filtration, biogas purification, associated gas, engineering services, and air dryers. The company's geographical segments are United States, Canada, China, Other, Korea, Italy, and France.

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FormerXBC Inc > Plug & Fuelcell are Overvalued says JP Morgan:)

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Comment by Ciaoon Jan 14, 2021 7:18pm

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Post# 32302980

RE:RE:Plug & Fuelcell are Overvalued says JP Morgan:)

FCEL falls on JP Morgan call

FCEL / PLUG have gone ballistic this year, doubling. FCEL is a 7 bagger and PLUG a 4 bagger in 2.5 months. BLDP up 50% this year. They're sells based on valuation.

XBC target price was raised by TD to $17.50 today.

"Details: We are downgrading Ballard Power to HOLD (from Speculative Buypreviously), with an increased target price of $40.00 ($27.00 previously). Thedowngrade is ultimately a valuation call and we note that Ballard's share price hasincreased by almost 60% year-to-date (eight trading days) due to a confluenceof factors, including several broader industry developments with positive read-throughs.

Valuation Considerations: We believe that investors are approaching hydrogensector valuation very differently than what is typical in other sectors, and note thatBallard's admittedly high 2021E and 2022E EV/Sales multiples of 76.7x and 49.5x,respectively, are not particularly helpful in coming to a valuation conclusion. Wehighlight that our revised target price of $40.00 is based on an NAV approachthat features a 10-year discounted cash flow analysis with a 44% revenue CAGR(including its proportionate share of the Weichai JV), EBITDAS margins that gravitatetoward major global automotive manufacturers over time, and a 25.0x terminalmultiple (up from 15.0x previously). Using an alternative approach, we calculate thatcurrent enterprise value represents an ~2.5x multiple of 2030E revenue and ~12.0xmultiple of 2030E EBITDAS (including its proportionate share of the Weichai JV)based on our NAV scenario. As a result, we believe that Ballard's intrinsic value inan optimistic commercialization scenario is fully reflected in the current share price"