12/27/2023 0 Comments Plug stock outlookIn its business update Plug Power said it could be seeing $3bn revenues by 2025 with a 20% margin. It expects to be producing 70 tons of green hydrogen a day by the end of the year and scaling up to 500 tons a day by 2025. Market sentiment seemed to be either that it did not believe the company could deliver those numbers or investors thought they were not being positive enough? Even so, now the thinking is turning to the green energy possibilities of fuel cells. The stock price of hydrogen and fuel cell maker Plug Power looks to be finally making some headway for the first time in 2002 as it has risen 48% since its low at the end of January to $25.9 today (21 March).Īs the price of traditional hydrocarbon fuels has rocketed so attention has turned to the potential of alternative sources of energy particularly for transport.įuel cells may not carry the cachet of battery electric vehicles like a Tesla because they are favoured by larger vehicles such as trucks and buses. But Plug's CEO Andy Marsh recently suggested the sanctions against Russia for invading Ukraine are highlighting the "need to move away from the Russian gas station" has become a "national security issue".Įven before the war Plug Power laid out bullish plans for the company including a revenue goal in excess of $900m. Plug Power’s gigafactory is located in Rochester, New York, and it reportedly produced 122 megawatts of “electrolyzer stacks for customers and Plug’s green hydrogen plants.” Moreover, prepare for a major scale-up as Plug Power is “on track” to ramp the gigafactory’s capacity up to 100 megawatts per month in the middle of the current quarter, “with plans to further increase output” during the third quarter of this year.Powering ahead: Will hydrogen fuel-cell supplier Plug Power recover its stock momentum? – Photo: Shutterstock This gigafactory features over 2 gigawatts of electrolyzers, 60,000 fuel cell stacks and 2.5 gigawatts of output capacity. I’m referring to Plug Power’s gigafactory, where on-site green hydrogen production takes place on a massive scale. Now, it’s time to ask yourself a tough question: Are you willing to overlook Plug Power’s current financial issues? If so, then I invite you to consider the piece of the puzzle that will drive Plug Power’s growth through 2030. Gigafactory Is the Key to Plug Power’s Future Growth In addition, Plug Power reported a widening net earnings loss during that time frame. It’s also problematic that Plug Power’s cash and cash equivalents dwindled from $2.48 billion at the end of 2021 to $690.63 million at the end of 2022. On the other hand, Plug Power has a track record of quarterly EPS misses. Plus, the average price target for PLUG stock is $25.50, which indicates strong upside potential. Out of 21 analysts, 16 gave Plug Power a “buy” rating and no “sell” ratings were observed. Indeed, Plug Power’s well-heeled investors include famous names like Vanguard and BlackRock (NYSE: BLK).įurthermore, Wall Street’s experts generally favor Plug Power. Still, the current Plug Power share price of around $10 seems too cheap, so there’s an opportunity here.Įven though many financial traders gave up on Plug Power, Samuel O’Brient reported that some big-money investors are staying in the trade. I’ll be the first to admit that $60 was too high, too soon. PLUG stock peaked at around $30 last year and, prior to that, traded above $60 per share. PLUG Stock Investors Will Have to Forgive Poor Financials
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