Plug Power (PLUG – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on the stock and has a $18.00 price target.
Amit Dayal’s rating is based on various positive expectations for Plug Power’s future performance and strategic shifts in the company’s operations. The analyst notes that management is placing a stronger emphasis on operational efficiency and margin improvements, which is anticipated to reduce the dependence on external financing. This shift in strategy is seen as a move towards a more balanced and sustainable business model. Dayal also points out that Plug Power has begun implementing price increases and optimizing its sales approach, which should contribute to gross margin improvements, especially as hydrogen fuel production in Georgia scales up.
Dayal maintains a Buy rating, projecting significant revenue growth for Plug Power over the next decade, with expectations that net revenues will increase from $965M in 2024 to $23.5B in 2034. This implies a compound annual growth rate (CAGR) of 37.6%. Additionally, the report projects an improvement in gross margins from current negative levels to 18.3% in 2025, and potentially exceeding 30.0% by 2029-2030. These financial projections are underpinned by a detailed discounted cash flow (DCF) analysis, which supports an $18 price target. Despite the acknowledgment of risks such as dilution, execution, and market adoption, the analyst appears confident in the long-term potential for Plug Power to capitalize on the expanding hydrogen industry.
In another report released on March 1, BTIG also maintained a Buy rating on the stock with a $5.00 price target.
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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.
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