![]() ![]() Investors should heed the analysts’ warnings, but ultimately form their own conclusions. Using phrases like “access to capital,” “need for external capital” and “near-term financing risks,” some analysts are concerned about Plug Power’s fiscal risks. Apparently, Morgan Stanley analysts are “getting more cautious” about the “pace of Plug’s revenue growth and margin improvement.” Not only that, but the analysts cite “potential near-term financing risks given the company’s continued elevated levels of cash burn.” Moreover, Morgan Stanley analyst Andrew Percoco issued a downgrade of Plug Power from “overweight” to “equal weight.” Percoco also drastically reduced his price target on Plug Power shares, from $35 to $15.Going forward, Kashy expects investors to focus on “demand, access to capital, supply-chains, and the Inflation Reduction Act.” Piper Sandler analyst Kashy Harrison kept his “neutral” rating on Plug Power but also slashed his price target the shares from $17 to $12.KeyBanc analysts downgraded Plug Power from “overweight” to “sector weight.” Concerned that the company faces a “series of headwinds” in the near term, KeyBanc analysts claim that Plug Power’s “need for external capital creates an overhang in the current environment.”.Reportedly, UBS analysts warn that Plug Power “remains a ‘show me’ story.” In addition, the analysts feel that Plug Power “must prove to the market that it can hit its revenue growth targets and drive inflection in gross margins.” Even though UBS analyst Manav Gupta maintained his “buy” rating on Plug Power shares, he reduced his price target from $26 to $24.Per The Fly, here’s a rundown of some not-so-optimistic expert opinions on Plug Power: Judging by some analysts’ recent downgrades and/or price target cuts, it appears that I’m not the only person who’s doubtful of Plug Power’s near-term prospects. I’m skeptical of Plug Power’s robust projections, and I have difficulty believing that PLUG stock will reach $25.10 in the next 12 months. Whether Plug Power actually achieves any of them remains to be seen. These are ambitious predictions, to say the least. How optimistic? Plug Power is targeting annual sales of $5 billion and 30% gross margin for 2026, followed by annual sales of $20 billion and 35% gross margin for 2030. On the other hand, Plug Power is highly optimistic about the company’s future prospects. This may seem hard to justify, as Plug Power has a track record of quarterly EPS misses and a rapidly dwindling position of cash and cash equivalents. Thus, if the current Plug Power share price is around $9, then evidently analysts are bracing for a 179% rally. Reportedly, based on the forecasts of 22 analysts on Wall Street, the consensus price target for PLUG stock is $25.10. The Calistoga energy storage system is expected to start construction in the fourth quarter of 2023 and become operational by the middle of 2024.Wall Street’s Surprisingly High Price Target for PLUG Stock The microgrid will include a short duration battery system and a long duration storage system of fuel cells and green liquid hydrogen.Īs the fuel cells to be delivered by Plug will be made in the US, Energy Vault will be able to take advantage of the additional 10% ITC under the Inflation Reduction Act for domestic content. The deal is part of a bigger initiative, a community microgrid that Energy Vault is building for PG&E to provide Calistoga with at least 293 MWh of dispatchable carbon-free energy. “Our agreement with Energy Vault marks a huge step forward for hydrogen fuel cells in the microgrid market and represents the future of utility power back-up,” commented Plug Power chief executive Andy Marsh. ![]() The fuel cells will replace the mobile diesel generators that Pacific Gas and Electric Company (PG&E) has used during these outages.ĭo you know we have a daily hydrogen newsletter? Subscribe here for free!Īccording to the announcement, the project represents the largest planned hydrogen powered fuel cell installation in the US. ![]() They will be used to provide backup power in Calistoga during public safety power shutoffs, which are undertaken to help prevent wildfires. The company will supply the hydrogen fuel cells to Energy Vault Holdings Inc (NYSE:NRGV). US hydrogen solutions provider Plug Power Inc (NASDAQ:PLUG) on Wednesday said it will provide 8 MW of hydrogen fuel cell stationary power for the city of Calistoga, located in the California Wine Country region. ![]()
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