Plug Power Shares Explode After Two Price Target Boosts

Green energy company Plug Power saw its shares explode this week, jumping double digits, after Wall Street learned that two investment firms have increased their price targets on the stock.

Analysts at B. Riley and Cowen lifted their price targets on Plug Power after the company announced two acquisitions on Tuesday.

B. Riley analyst Christopher Souther bumped his price target to $8 a share from $7 while Cowen’s Jeff Osborne raised his price target to $9 from $6.

Shares were up as much as almost 21% on Wednesday after rising about 15% on Tuesday.

Plug Power announced that it had acquired United Hydrogen Group of Canonsburg, Pa., and GinerELX of Newton, Mass.

According to a statement from the company, both acquisitions are in line with a vertical-integration strategy that Plug Power has been pursuing.

“These activities further enhance Plug Power’s position in the hydrogen industry with capabilities” in generating, liquefying and distributing hydrogen fuel, thus complementing its position in designing, building and operating customer-facing hydrogen fueling stations, said the company.

“Improving the fueling cost and network is potentially a key enabler of potential expansion into commercial vehicles,” said analyst Souther.

Analyst Osborne based his upgrade on the company’s increase in sales and Ebitda projections for 2024.
Plug Power expects to report revenue of $1.2 billion in 2024, up from its previous projection of $1 billion. The company also expects operating profit of $210 million that year, up from its previous estimate of $170 million. And it sees adjusted earnings before interest, taxes depreciation and amortization up 25% to $250 million.

“Plug Power is focused on becoming one of the largest green hydrogen generation companies in the United States over the next five years and globally thereafter, and plans to continue to work with existing and new partners to accomplish this goal,” the company stated.

Disclaimer: We have no position in Plug Power Inc. (NASDAQ: PLUG) and have not been compensated for this article.