Why JPMorgan Is Bullish On Hydrogen Fuel Cell Stock Hyzon Motors

Hyzon Motors Inc. (NASDAQ:HYZN), a pure play hydrogen mobility company, is accelerating the hydrogen transition, a JPMorgan analyst said.

The Hyzon Analyst: Bill Peterson initiated coverage of Hyzon shares with an Overweight rating and year-end 2022 price target of $18.

The Hyzon Takeaways: Hyzon is an early leader in fuel cell-based truck and bus deployments with best-in-class fuel cell technology, Peterson said in a note.

Unlike several emerging zero-carbon, heavy-duty commercial-focused companies, the company is already shipping trucks for revenue with an expanding backlog, the analyst said. 

Hyzon's early success, he said, is attributable to years of knowhow and improvements in its fuel cell technologies.

The company has cultivated key vehicle assembly partnerships that help to accelerate time-to-market and help execute on an asset-light business model, Peterson said. 

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

The market for fuel cell-based commercial trucks will grow by nearly 75% CAGR between 2020 and 2025 and nearly 50% CAGR through 2030, the analyst said. Hyzon will likely grow revenue by nearly 200% CAGR between 2021 and 2025, he said.

Hyzon is poised to achieve nearly 10% share of the heavy-duty commercial EV market and 1% share of the overall commercial EV market, Peterson said. 

In the longer term, there are further opportunities for growth in areas such as aviation, marine and trains, the analyst said. 

"Overall, we think Hyzon's early leadership in fuel cell vehicles, strong partnerships within the hydrogen ecosystem and pureplay focus could uniquely position it to outperform relative to competitors." 

HYZN Price Action: At last check, Hyzon shares were jumping 23.86% to $10.90. 

Related Link: Hyzon Motors Stock Declines On Wider-Than-Expected Q2 Loss

Photo: courtesy of Hyzon.