Clean Energy Battle: Plug Power's Hydrogen Economics Against Bloom Energy's Strong Underlying Demand
Portfolio Pulse from Surbhi Jain
Morgan Stanley downgraded Plug Power Inc (PLUG) to Underweight from Equal Weight with a price target of $3, citing liquidity concerns and worsening hydrogen economics. Conversely, Morgan Stanley remains Overweight on Bloom Energy Corp (BE) due to strong demand and profitable fuel cell business. Over the past year, investments in PLUG significantly underperformed compared to BE, with PLUG facing policy changes, funding needs, and business headwinds, not expected to be profitable before 2026. Bloom Energy, despite challenges, expects positive operating margins for 2023 and has differentiated itself with its products, including electrolyzers in four hydrogen hubs and a robust sales inquiry pipeline.
December 07, 2023 | 3:23 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Morgan Stanley downgraded Plug Power to Underweight with a lower price target of $3, highlighting liquidity concerns and negative hydrogen economics. The company is not expected to be profitable until 2026 and is burning cash rapidly.
The downgrade by Morgan Stanley is a significant negative sentiment indicator for PLUG, suggesting that the stock may face downward pressure in the short term due to the analyst's concerns about liquidity and the hydrogen market.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Morgan Stanley maintains an Overweight rating on Bloom Energy, recognizing strong underlying demand and profitability in its fuel cell business. The company expects positive operating margins for 2023 and has differentiated its product offerings.
The positive outlook from Morgan Stanley for Bloom Energy, coupled with expectations of positive operating margins and product differentiation, suggests potential for stock appreciation in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 100