Plug Power 'Plagued' But A Rival Hydrogen OEM Stock Shows Promise: Morgan Stanley
Portfolio Pulse from Priya Nigam
Morgan Stanley analyst Arthur Sitbon downgraded Plug Power Inc (PLUG) from Equal-Weight to Underweight and reduced its price target from $3.50 to $3, citing liquidity concerns and worsening hydrogen economics. Meanwhile, Sitbon reiterated an Overweight rating on Bloom Energy Corp (BE) but lowered the price target from $23 to $22, highlighting strong demand and profitability in its fuel cell business. PLUG shares dropped by 7.31% to $3.93, while BE shares rose by 0.54% to $14.99.
December 06, 2023 | 4:05 pm
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POSITIVE IMPACT
Bloom Energy Corp retains an Overweight rating from Morgan Stanley, although the price target was slightly reduced from $23 to $22, reflecting strong demand and profitability in its fuel cell business.
The reiteration of an Overweight rating suggests that Morgan Stanley remains optimistic about Bloom Energy's prospects, which could positively influence the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Morgan Stanley downgraded Plug Power's stock from Equal-Weight to Underweight and lowered the price target to $3, indicating concerns over liquidity and hydrogen market economics.
The downgrade by a major analyst firm like Morgan Stanley can have a significant negative impact on investor sentiment, likely leading to a short-term decline in the stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90