Today, one of the big movers in the market is Hyzon Motors (NASDAQ:HYZN). Unfortunately for investors in HYZN stock, however, this move is to the downside. Currently, shares of Hyzon are down 17% on a bearish day in the markets.
Much of Hyzon’s performance is likely explained by the overall market. Shares of electric vehicle (EV) and other environmentally friendly vehicle stocks have suffered greatly today as investors recheck their models in anticipation of higher interest rates. Recently released meeting minutes from the March Federal Open Market Committee (FOMC) suggest just this. Overall, for investors in higher-growth stocks that have yet to reach maturity, it’s shaping up to be an interesting time.
These factors especially apply for decarbonization and hydrogen mobility company Hyzon Motors. However, there are other concerns investors are pricing in today.
So, let’s dive into what investors are watching with HYZN stock right now.
HYZN Stock Sinks on Analyst Downgrade
Analyst ratings on stocks matter. For investors who look at the one-year outlook of given stocks, what the experts forecast can play heavily into their decision-making processes. Accordingly, a downgrade often signals that something key has changed for that company — at least in the eyes of those who follow these stocks closely.
This is the case today for HYZN stock. Specifically, Cannacord Genuity downgraded Hyzon to a “hold” rating due to a number of concerns. In particular, analysts appear to be taking issue with slower-than-expected sales growth and revenue recognition issues in China.
While Hyzon does sell its commercial vehicles outside of China, that market is important to its growth story. Now with Chinese GDP slowing and EV margins under pressure, analysts appear to be less bullish on the company. Considering the bearish trajectory of HYZN, this isn’t a good thing.
For now, I’m keeping this stock on my watch list. However, the issues pointed out in the Canaccord report are worrisome. Accordingly, investors may want to take a very cautious approach to this company — and the sector overall.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
