Hyzon Motors Is A Hydrogen Play Positioned For Trucking Demand: Wedbush

Activity around the use of hydrogen for the long-haul trucking industry has increased and several pilot projects are being undertaken globally, promising a strong market opportunity for hydrogen fuel cell energy companies, according to a Wedbush analyst.

The Hyzon Analyst: Daniel Ives maintained an Outperform rating on Hyzon Motors Inc. HYZN shares and increased the price target from $10 to $15.

The Hyzon Takeaways: Hyzon is quickly establishing itself as the clear leader in hydrogen trucking market, Ives said in a note.

The growth and adoption for Hyzon will likely to accelerate over the coming years, with diesel trucking conversion opportunities abounding, the analyst said.

"Hyzon's unique hydrogen fuel cell and production intellectual property, paired with the dynamic potential of hydrogen, serves as a driving force to their success," he said. 

Related Link: ACT Expo: Exclusive First Ride In Hyzon Hydrogen-Powered Fuel Cell Truck

The use of hydrogen fuel cells in heavier vehicles is an optimal solution, specifically for medium- to long-distance travel, as they can't afford to make frequent stops to recharge, Ives said.

Hyzon removes a major pain point for customers as they look to switch to zero-emission vehicles, the analyst said. 

Fuel cells can be recharged in between 3 minutes and 8 minutes on average compared to the 8-hour average of battery-electric trucks.

Market trends are shifting toward low emissions and a quick solution that can replicate the efficiency of existing fuel offerings, he said. 

HYZN Price Target: At last check, Hyzon shares were up 4.9% at $9.64.

Related Link: Hyzon Motors Plans Fuel Cell Material Production Facility Near Chicago