Plug Power May Be Plagued By Another Challenging Year - Analyst Forecasts Negative Fuel Margins In FY24
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Kashy Harrison maintains an Underweight rating on Plug Power, Inc. (NASDAQ:PLUG), with a slightly increased price target of $2.90 from $2.80. Despite near-term positive catalysts, Harrison forecasts a challenging financial year ahead for Plug Power, including negative FY24 fuel margins due to legacy contracts. The analyst notes potential improvements in cash burn through inventory management and CapEx reduction but remains concerned about the company's profitability and reliance on equity capital markets for funding. The cryo business saw growth in 2023, but its year-end backlog decreased by 55% year over year.
March 05, 2024 | 6:46 pm
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Piper Sandler analyst Kashy Harrison maintains an Underweight rating on Plug Power, slightly raising the price target to $2.90 from $2.80, forecasting a challenging financial year ahead with negative FY24 fuel margins.
The negative outlook provided by the analyst, including the forecast of negative fuel margins and concerns over profitability and funding, is likely to impact investor sentiment negatively in the short term, leading to potential downward pressure on PLUG's stock price.
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IMPORTANCE 90
RELEVANCE 100