What happened

Shares of Hyzon Motors (HYZN 7.76%) rocketed Thursday morning and were up 18.4% as of 10:25 a.m. ET. The electric vehicle (EV) stock has languished since the manufacturer of fuel-cell commercial vehicles was attacked by a short-seller a couple of months ago. Under such circumstances, when an analyst turns bullish about Hyzon, the market is bound to react strongly.

So what

This morning, Jed Dorsheimer at Canaccord Genuity initiated coverage of Hyzon Motors stock with a buy rating and a price target of $12 a share. The analyst believes Hyzon shares aren't fairly valued even though the company is already delivering hydrogen fuel-cell EVs, unlike rivals. It is targeting sales volumes of at least 600 vehicles in 2022, and expanding its footprint internationally.

Dorsheimer highlighted Hyzon Motors' "industry-leading power density," and believes the oil and gas industry could readily use its existing distribution network to deploy infrastructure and help speed up the pace of adoption of hydrogen fuel-cell EVs.

Hydrogen fuel cell buses on a road.

Image source: Getty Images.

With Hyzon shares closing Wednesday at only $6.23, Dorsheimer's price target implies almost 93% upside.

The company reported its first revenue, worth just under $1 million, in the third quarter, and said it expects to deliver 85 vehicles across Asia, Europe, Australia, and North America in 2021.

It also said its expansion should mean two of its factories, one each in Rochester, New York, and Bolingbrook, Illinois, should be fully operational by the end of June 2022. On its third-quarter earnings call, Hyzon Motors said it expects to deliver 600 to 700 vehicles by 2022.

Now what

Hydrogen fuel cell technology is rapidly gaining traction within the transportation sector. In July, Hyzon outlined ambitious plans to deploy nearly 9,300 fuel cell trucks and generate revenue worth $3.3 billion by 2025. Those are just projections, though, and it remains to be seen whether the company can actually sell 600 vehicles in 2022 given that it plans to deliver just about 85 units this year.

For now, investors who want to cash in on the EV boom seem to have found an opportunity to scoop up some shares of Hyzon Motors on the cheap based on Dorsheimer's target price.