Plug Power Analyst Says Loan Commitment De-Risks Hydrogen Stock
Portfolio Pulse from Priya Nigam
Plug Power Inc (NASDAQ:PLUG) shares rose after announcing a conditional loan commitment of up to $1.66 billion from the U.S. Department of Energy to finance green hydrogen plants. This development comes after disappointing Q1 results and concerns over the need for dilutive financing. Analyst Bill Peterson of JPMorgan maintains a Neutral rating on PLUG, citing the loan as a key de-risking event that could reaccelerate growth if finalized. Near-term catalysts include loan approval, project funding, margin improvements, and final 45V tax credit guidance.
May 14, 2024 | 4:30 pm
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Plug Power's conditional loan commitment from the DOE for up to $1.66 billion to finance green hydrogen plants is seen as a significant de-risking event. This development could support the company's growth and alleviate concerns over the need for dilutive financing. JPMorgan analyst Bill Peterson maintains a Neutral rating, highlighting the importance of the loan for future growth and margin improvements.
The loan commitment from the DOE addresses investor concerns regarding dilutive financing and slow margin improvements, potentially reaccelerating growth. The Neutral rating by JPMorgan suggests cautious optimism, with the stock's future performance likely hinging on the company's ability to meet loan conditions and achieve projected margin improvements.
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