Shares of Plug Power charged greater Tuesday, placing them on observe for a sixth straight acquire, forward of the hydrogen and gas cell methods firm’s much-anticipated annual symposium later this week.
Analyst Christopher Souther at B. Riley stated he believes the symposium, to be held nearly on Oct. 14, shall be key for gauging the corporate’s long-term potential.
“In our view, management is likely to increase its 2021 guidance and 2024 targets given the strength in material handling and the additional adjacent market opportunities, which should boast robust growth rates through the decade,” Souther wrote in a word to purchasers. “In addition to the potential near- and mid-term guidance raises, we expect management to provide insight into its goals for 2025+, which should drive positive investor sentiment given [Plug Power’s] opportunity set.”
He reiterated the purchase score he’s had on the inventory since June 2020 and stored his inventory value goal at $45, which implied about 52% upside from present ranges.
shot up 6.8% in afternoon buying and selling towards a three-month closing excessive. The inventory has run up 21.4% amid a six-day profitable streak, which might be the longest stretch of positive aspects because it rose for seven-straight days via Jan. 13, 2021.
While the inventory has now run up 47.1% off its 2021 closing low of $20.07 on May 10, it was nonetheless down 59.6% from its 16-year excessive of $73.18 on Jan. 26.
In August, throughout Plug’s convention name following the corporate’s second-quarter earnings report, Plug Chief Executive Andrew Marsh raised the 2021 gross billings steering to $500 million, up from earlier steering of $475 million supplied in February, and 48% above 2020’s $337 million.
B. Riley’s Souther stated he believes the corporate is “ahead of schedule” on its full-year gross billings goal, making one other steering elevate potential.
“Core material handling should represent 90% of the $500 million target, and accelerating electrolyzer and stationary demand could drive the total higher,” Souther wrote.
He stated that Amazon.com Inc.
continues to be Plug’s largest materials dealing with buyer, and he sees “strong potential” for Amazon to turn out to be a “meaningful” shopper within the electrolyzer, stationary and on-road trucking enterprise segments as effectively.
Souther additionally expects Plug to offer on the symposium a breakdown of annual targets by finish market and geography, which ought to assist enhance visibility into the corporate’s long-term outlook.
Regarding inexperienced hydrogen, the corporate is probably going to present traders extra shade on manufacturing amenities and coverage impacts, Souther stated. After Congress proposed final month a manufacturing tax credit score of as much as $3 per kilogram for inexperienced hydrogen, he expects Plug to element how such laws may influence its targets.
Also learn: Plug Power inventory surges after Piper Sandler says time to purchase, citing ‘tremendous forward momentum’ on inexperienced hydrogen plans.
Plug’s inventory has dropped 12.9% 12 months thus far, whereas shares of rivals Ballard Power Systems Inc.
have tumbled 37.0% and FuelCell Energy Inc.
have shed 38.6%. The S&P 500 index
has gained 16.1% this 12 months.