H.C. Wainwright analyst Amit Dayal has maintained their bullish stance on PLUG stock, giving a Buy rating yesterday.
Amit Dayal has given his Buy rating due to a combination of factors that suggest a positive outlook for Plug Power. The company’s recent cost restructuring efforts are beginning to show in their financials, with significant reductions in operating expenses and gross loss. Despite a year-over-year decrease in net revenues for the first quarter of 2024, the company has successfully lowered its cash burn and is well-positioned for topline growth throughout the year, particularly with the anticipated increase in electrolyzer revenues. Furthermore, Plug Power’s focus on improving its cost structure and operating margins appears to be well received by investors, as reflected in the stock’s favorable reaction to the Q1 results.
Moreover, the upcoming production start at the Louisiana plant, which should increase the company’s liquid hydrogen production capacity, positions it to meet customer fuel demand internally. The management’s confidence in securing a Department of Energy term loan further solidifies the company’s execution plan for the year without reliance on external funding. Long-term prospects remain strong, evidenced by the company’s backlog of Basic Design and Development Package contracts for electrolyzers, which are expected to significantly contribute to revenue growth in 2025. This underpins Dayal’s conviction that the company is on a solid trajectory, meriting a Buy rating for the stock.
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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.
