Plug Power (PLUG) announced on Thursday a strategic framework agreement with BAE Systems (BAESF) to increase the adoption of zero-emission transit in the United States. As a part of this agreement, the two companies will integrate Plug’s ProGen fuel cell engines into BAE’s smart electric drive systems to supply zero-emission powertrains to transit bus equipment manufacturers across North America. They will also provide hydrogen and refueling infrastructure to customers.
Plug Power’s CEO, Andy Marsh said, “We’re excited to work with BAE Systems, a pioneer in clean energy solutions for sustainable transportation, to bring the benefits of green hydrogen to transit systems in North America. This strategic partnership will play an instrumental role in advancing our on-road applications strategy and delivering new growth opportunities that help meet our year-end 2025 goals, including annual production of 500 tons of green hydrogen daily.”
The partnership is expected to enable both companies to expand into a market where zero-emission power solutions can be used commercially. (See Plug Power stock analysis on TipRanks)
On April 19, Wells Fargo analyst Michael Blum initiated coverage of PLUG with a Hold rating and a price target of $30. Blum said in a research note to investors that the company has a “visible” growth trajectory when it comes to the fuel cell material business and believes that PLUG has potential for accelerated growth from the commercialization of hydrogen fuel cells.
Overall, consensus on the Street is that PLUG is a Moderate Buy based on 10 Buys, 5 Holds and 1 Sell. The average analyst price target of $54.27 implies upside potential of about 93% from current levels.
According to the TipRanks’ Smart Score system, PLUG scores a 5 out of 10, indicating that the stock is likely to perform in line with market averages.