Clean hydrogen fuel cell solutions provider Plug Power (NASDAQ:PLUG) delivered lower-than-expected fourth-quarter financials. Following the announcement, PLUG stock fell over 2% during after-hours of trade.
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The delays in constructing the hydrogen plant, challenges while introducing new products, and overall weak macroeconomic conditions took a toll on PLUG’s operating performance. Nonetheless, management remains upbeat and reiterated the 2023 outlook. Echoing similar sentiments, Wall Street is bullish about PLUG stock.
Plug Power posted revenues of $220.7 million, up 36% year-over-year. However, its top line fell short of analysts’ estimate of $268.17 million. Despite the short-term sales headwinds, Plug Power reaffirmed its revenue guidance of $1.4 billion for 2023, reflecting about 100% year-over-year growth.
Moreover, as the company expands its production, it expects to generate about $5 billion in revenues by 2026 and $20 billion by 2030. Along with the expansion of the production facilities, supportive government policies, its multiple green hydrogen supply agreement, and growing total sales pipeline (on a per-day basis) provides a solid foundation for long-term growth.
H.C. Wainwright analyst Amit Dayal sees its growing scale and margin improvement to drive multi-fold growth in PLUG stock. Dayal expects Plug Power’s revenue to surpass $25 billion by 2032, reflecting a CAGR of more than 42%.
What’s the Prediction for PLUG Stock?
Analysts are optimistic about Plug Power’s prospects, given the ongoing focus on decarbonization and the expansion of the company’s generation capabilities. PLUG stock has received 11 Buy and one Hold for a Strong Buy consensus rating.
At the same time, analysts’ average price target of $29.42 implies a significant upside potential of 107.04%.
Bottom Line
The near-term headwinds weighed on PLUG stock. However, significant growth opportunities from the ongoing shift toward green energy and strong demand augur well for growth. While the stock could stay muted in the short term due to the lower-than-expected Q4 sales, its long-term prospects remain intact, reflected through management’s solid revenue outlook and analysts’ Strong Buy consensus rating.
