Plug Power Analyst Turns Bearish: 'Even With $1.6 Billion In Funding We Are Skeptical'
Portfolio Pulse from Priya Nigam
Plug Power Inc (NASDAQ:PLUG) shares fell in premarket trading despite the launch of the largest U.S. green hydrogen plant. BMO Capital Markets analyst Ameet Thakkar downgraded PLUG from Market Perform to Underperform and cut the price target from $3.50 to $2.50, citing skepticism about the value accretion from additional hydrogen plants even with $1.6 billion in DOE funding. Thakkar highlighted uncertainties around DOE loan approval and concerns about margins and DOE requirements that could negatively impact long-term estimates.
January 24, 2024 | 3:24 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
BMO Capital Markets analyst Ameet Thakkar downgraded Plug Power to Underperform and reduced the price target to $2.50, expressing skepticism about the company's future value growth and concerns over DOE loan uncertainties and potential margin impacts.
The downgrade by a prominent analyst based on concerns about DOE funding and the potential negative impact on margins is likely to influence investor sentiment negatively. The reduction in price target further emphasizes the analyst's bearish outlook, which could lead to a short-term decline in PLUG's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100