Shares in Plug Power (PLUG) plunged 7% in Tuesday’s after-hours trading after the energy giant announced that it is launching a registered public offering of $300 million of its common stock.
In connection with the offering, Plug Power also intends to grant the underwriter a 30-day option to purchase up to $45 million of additional shares of common stock.
According to the statement, PLUG intends to use the net proceeds from the offering for working capital and other general corporate purposes, which may include capital expenditures, potential acquisitions, growth opportunities and strategic transactions.
However, Plug Power adds that it has not designated any specific uses and has no current agreement with respect to any acquisition or strategic transaction.
Shares in PLUG have exploded by over 257% year-to-date, and analysts continue to have a bullish Strong Buy consensus on the stock with 8 recent buy ratings vs 2 hold ratings. That’s alongside an average analyst price target of $12 (6% upside potential).
Oppenheimer analyst Colin Rusch bumped up his price target to $13 and reiterated a buy rating on the stock after Plug Power posted a beat and raise quarter. The company also guided well ahead of the Street for 3Q20 while indicating that it was fully booked for its 2020 guidance.
“We continue to believe that PLUG has the most mature motive fuel cell platform in the market coupled with the largest network of fueling infrastructure” commented Rusch, adding that he sees upside to near-term expectations due to growth in home delivery and pressure to increase through-put on warehouses. (See PLUG stock analysis on TipRanks)