In a report released on March 1, Gregory Lewis from BTIG maintained a Buy rating on Plug Power (PLUG – Research Report), with a price target of $5.00.
Gregory Lewis has given his Buy rating due to a combination of factors surrounding Plug Power’s proactive financial strategies and its promising green hydrogen projects. Plug Power’s management has taken significant steps to improve liquidity by tapping into a roughly $1 billion at-the-market offering, which has allowed them to raise substantial capital and remove the going-concern language from their SEC filings. This move is expected to open doors for long-term debt financing, further supporting their expansion plans. Additionally, a term sheet for $1.6 billion in project financing has been secured for Department of Energy projects, which is anticipated to fund a substantial portion of these initiatives, further underpinning the company’s growth trajectory.
Moreover, the development of Plug Power’s green hydrogen projects is seen as crucial to improving gross margins, especially given the negative margins reported in the past due to supply outages. With plants in Georgia and Tennessee ramping up production, and a joint venture in Louisiana slated to come online, there is an expectation of significant reductions in hydrogen fuel costs. Lewis also notes the company’s initiatives to trim expenditures, including a reduction in capital expenditures and operational costs, which will be vital to mitigate cash burn as they progress towards a more sustainable financial position. The final guidance on the Inflation Reduction Act is also seen as a pivotal factor that could drive new equipment orders for Plug Power, further justifying the Buy rating.
According to TipRanks, Lewis is an analyst with an average return of -1.3% and a 44.27% success rate. Lewis covers the Energy sector, focusing on stocks such as Scorpio Tankers, Tidewater, and Transocean.
In another report released on March 1, TD Cowen also maintained a Buy rating on the stock with a $7.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Plug Power (PLUG) Company Description:
New York-based Plug Power, Inc. is an electrical equipment manufacturing company. It develops hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity.
Read More on PLUG:
- PLUG Earnings: Plug Power Fizzles after Shaky Earnings Results
- Plug Power Inc Reported Earnings. Did it Beat Estimates?
- Plug Power Issues Key Financial Information Update
- Plug Highlights Year of Strategic Growth and Advancements in Accelerating the Green Hydrogen Economy
- Options Volatility and Implied Earnings Moves Today, March 01, 2024
