UPDATE: JPMorgan Double Downgrades Hyzon Motors Inc (HYZN) to Underweight

JPMorgan analyst Bill Peterson downgraded Hyzon Motors Inc (NASDAQ: HYZN) from Overweight to Underweight.

The analyst comments "Last year, we initiated coverage on Hyzon and maintained our Overweight rating through the short report and subsequent SEC investigation, predicated on an early mover advantage in fuel cell trucking that could ultimately lead to Hyzon developing meaningful scale in the heavy-duty trucking space. After yesterday's filing after market close, which indicates a material financial control issue within the company, we downgrade Hyzon to Underweight as we think investors are unlikely to give credit to the company for having strong core fuel cell technology and an underrated hydrogen strategy, at least for the next several quarters. We think the latest news will revive questions on internal oversight and we would prefer to see evidence of better execution on the product and go-to market side, as well as with the company’s financials. Again, we think it could take several quarters before institutional investors could warm up to the story, and only if the company delivers multiple quarters of clean execution, including on key new strategies such as Repower. Considering the mid- and longer-term, we think the company’s original early mover advantage in FCEVs is less likely given emerging competition, especially in overseas markets in Europe and China. While Hyzon may still generate meaningful scale, we lower our out-year estimates and withdraw our Dec-22 price target. With our new assumptions that HYZN is likely to underperform our coverage universe, we downgrade the stock to Underweight."

For an analyst ratings summary and ratings history on Hyzon Motors Inc click here. For more ratings news on Hyzon Motors Inc click here.

Shares of Hyzon Motors Inc closed at $4.49 yesterday.

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