What happened
After powering nearly 15% higher in March, shares of Hyzon Motors (HYZN -0.82%) aren't riding the same smooth road in April. Through the first five days of the month, the stock dipped more than 2% lower, and its descent is continuing today. Shares were down nearly 18% at 11:09 a.m. ET on Wednesday.
What's powering the sell-off? An investment firm's downgrade of the stock and a lowered price target are weighing heavily on investors' minds, motivating them to exit their positions.
So what
Changing lanes with its opinions on Hyzon stock, Canaccord Genuity downgraded shares to hold from buy and reduced its price target to $6 from $12. Investors are particularly sensitive to Canaccord's actions today considering the bearish opinion on the stock that appeared two weeks ago when D.A. Davidson's analyst Michael Shlisky cut his price target to $16 from $21.
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Despite Wall Street's recent souring on Hyzon's stock, there has been some encouraging news from the company. On March 23, it reported fourth-quarter 2021 earnings and announced that it had experienced significant backlog growth. Currently, its backlog stands at $287 million, representing a 246% increase over what it reported in July 2021.
Now what
While it's understandably disheartening for investors to learn that Wall Street is pessimistic on a stock, it's important to remember that analysts often have shorter investing time horizons than the multiyear holding periods that The Motley Fool encourages.
Canaccord set a $6 price target. But that doesn't mean that patient investors who are comfortable with parking this hydrogen-focused electric vehicle stock in their portfolios for the long term can't see it drive considerably higher.
