Plug Power's Margin Improvement 'Is Proving Elusive': Analysts Deep Dive Into Q2 Print
Portfolio Pulse from Priya Nigam
Plug Power Inc's Q2 results showed strong revenue growth but disappointing margins, leading to a drop in its share price. Analysts from Oppenheimer, RBC Capital Markets, KeyBanc Capital Markets, and Morgan Stanley provided their insights, with most maintaining an Outperform or Equal-Weight rating. The company is expected to announce a non-dilutive financing in 3Q23 to support capex investments. Delays in production facility timing and higher costs may keep the stock under pressure. The company's margin turnaround is proving elusive, and it may be 2024 before gross margin turns positive.
August 10, 2023 | 4:12 pm
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Plug Power's Q2 results showed strong revenue growth but disappointing margins. The company is expected to announce a non-dilutive financing in 3Q23. Delays in production facility timing and higher costs may keep the stock under pressure. It may be 2024 before gross margin turns positive.
The company's disappointing margins despite strong revenue growth are a concern for investors, leading to a drop in the share price. The expected non-dilutive financing in 3Q23 indicates the company's need for capital to support its investments, which could be a potential risk. The ongoing delays in production and higher costs are likely to keep the stock under pressure. The elusive margin turnaround and the expectation that it may be 2024 before gross margin turns positive also add to the negative outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100