Shares of Plug Energy charged larger Tuesday, placing them on monitor for a sixth straight achieve, forward of the hydrogen and gas cell programs firm’s much-anticipated annual symposium later this week.
Analyst Christopher Souther at B. Riley mentioned he believes the symposium, to be held just about on Oct. 14, shall be key for gauging the corporate’s long-term potential.
“In our view, administration is prone to improve its 2021 steerage and 2024 targets given the energy in materials dealing with and the extra adjoining market alternatives, which ought to boast strong development charges via the last decade,” Souther wrote in a word to shoppers. “Along with the potential near- and mid-term steerage raises, we count on administration to offer perception into its objectives for 2025+, which ought to drive constructive investor sentiment given [Plug Power’s] alternative set.”
He reiterated the purchase ranking he’s had on the inventory since June 2020 and saved 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 factors because it rose for seven-straight days via Jan. 13, 2021.
Whereas the inventory has now run up 47.1% off its 2021 closing low of $20.07 on Could 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 Government Andrew Marsh raised the 2021 gross billings steerage to $500 million, up from earlier steerage of $475 million offered in February, and 48% above 2020’s $337 million.
B. Riley’s Souther mentioned he believes the corporate is “forward of schedule” on its full-year gross billings goal, making one other steerage elevate attainable.
“Core materials dealing with ought to signify 90% of the $500 million goal, and accelerating electrolyzer and stationary demand may drive the full larger,” Souther wrote.
He mentioned that Amazon.com Inc.
continues to be Plug’s largest materials dealing with buyer, and he sees “sturdy potential” for Amazon to develop into a “significant” consumer 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.
Concerning inexperienced hydrogen, the corporate is probably going to present traders extra shade on manufacturing services and coverage impacts, Souther mentioned. 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 objectives.
Additionally learn: Plug Energy inventory surges after Piper Sandler says time to purchase, citing ‘great ahead momentum’ on inexperienced hydrogen plans.
Plug’s inventory has dropped 12.9% yr to this point, whereas shares of rivals Ballard Energy Methods Inc.
have tumbled 37.0% and FuelCell Power Inc.
have shed 38.6%. The S&P 500 index
has gained 16.1% this yr.