What's Going On With Plug Power Shares On Wednesday?
Portfolio Pulse from Nabaparna Bhattacharya
Plug Power Inc. (NASDAQ:PLUG) shares dropped over 5% in premarket trading on Wednesday after a 31% surge the previous day. The decline follows Truist Securities analyst Jordan Levy reiterating a Hold rating and halving the price target from $6 to $3, citing long-term visibility concerns and reducing FY25E revenues. Despite Plug Power announcing the start of operations at the largest U.S. liquid green hydrogen plant, the company faces challenges, including a significant year-over-year share price drop and supply issues in its hydrogen network.
January 24, 2024 | 1:19 pm
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NEGATIVE IMPACT
Plug Power's stock is experiencing a downturn despite the positive news of launching a major hydrogen plant, due to a Hold rating and price target cut by Truist Securities, along with concerns over long-term revenue visibility and supply challenges.
The short-term impact on PLUG's stock is negative due to the analyst's downgrade and price target cut, which often leads to a loss of investor confidence and a decrease in stock price. The reduction in FY25E revenue forecasts and the mention of supply challenges further exacerbate concerns, overshadowing the positive news of the new hydrogen plant.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100