Plug Power (PLUG) is a maker of fuel-cell systems for EVs. I am bullish on the stock.
There will be many businesses contributing to the movement towards a carbon-neutral future. Among the most intriguing ones is Plug Power.
As we’ll see, investing in PLUG stock hasn’t been easy in 2021, so far. This year has really tested the resolve of the company’s loyal shareholders.
This is surprising, as Plug Power is a premier manufacturer of hydrogen fuel cells. On the other hand, so far the company has primarily made these fuel cells for forklifts in large warehouses.
The stakeholders might want to see Plug Power expand its horizons. Yet, don’t be surprised if the company is already venturing into new areas — including vehicles that fly. (See Analysts’ Top Stocks on TipRanks)
A Quick Look at PLUG Stock
As PLUG stock rallied from $32 to $75 in January, the prevailing sentiment was certainly bullish.
That run-up wasn’t meant to last forever, though. As it turned out, a multi-month share-price collapse was about to ensue.
The worst of it happened in May as PLUG stock fell to a stomach-churning $20. This wasn’t reasonable, really, as the company wasn’t in any major trouble at that time.
So, a recovery was justified. The stock started to perk back up in the following months, eventually reaching into the mid-30s in late October.
Peering into the future, it’s not impossible that PLUG stock could double from here, and even retake $75.
The buyers weren’t ready to sustain the rally in January, but that’s in the rear-view mirror and the future looks bright now.
Turning to the Skies
Are there any boundaries to the “hydrogen highway” that Plug Power is building?
Not really, as even the skies aren’t off-limits for this audacious company, and one of its partners.
Reportedly, commercial aircraft company Airbus (EADSY) will work with Plug Power on a joint study and road map that could deliver green hydrogen to aircraft and the airport ecosystem over the coming years.
This venture would be part of Airbus’ goal of bringing zero-emission aircraft to market by 2035.
Airbus will provide insight on hydrogen aircraft characteristics, while Plug Power will build deployment scenarios for green-hydrogen infrastructure at airports.
Plug Power CEO Andy Marsh clearly has numerous applications in mind in regard to this partnership.
“Not only do we envision a future where aircraft everywhere are powered by green hydrogen, but the airports that serve them as well, including ground support equipment, forklifts, and vehicles that shuttle consumers around airports, and to gates,” he said.
Cleaning Up the Drones
Technically speaking, drones are aircraft, too. Has Plug Power forgotten about these little last-mile flyers?
Not at all. As it turns out, Plug Power will cooperate with drone technology firm HevenDrones to help commercialize hydrogen fuel cell-powered heavy-lift actionable drones.
HevenDrones will provide the necessary skills to develop and manufacture heavy-lift drones. Meanwhile, Plug Power will leverage its fuel-cell stack technology and systems capabilities.
Together, the two companies intend to build hydrogen-powered drones of varying sizes, capable of lifting heavy weights and flying for extended periods.
Since Plug Power is involved, the stakeholders should expect these drones to be supremely clean and green, as well as fuel efficient.
Admittedly, that remains to be seen. Still, this ought to be a potent partnership — or at least, that’s the impression we can glean from Keith Schmid, who leads the Mobility and Stationary Power Solutions business unit for Plug Power.
“[The] combination of our leading fuel cell technology and related hydrogen infrastructure together with the impressive drone technologies being developed by HevenDrones creates exciting potential in this high growth industry,” Schmid explained.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, PLUG is a Strong Buy, based on 12 Buy and three Hold ratings. The average Plug Power price target is $43.36, implying 27.5% upside potential.
The Takeaway
Hopefully, we’ll see a repeat of PLUG stock’s swift rally that we observed in January.
There’s no compelling reason for the market to ignore Plug Power. Fearlessly, the company is leading the hydrogen fuel revolution in the 2020s.
Already, there’s evidence that Plug Power’s influence has no boundaries; even in the sky, you’ll see this company making its mark.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
