Analyst Dushyant Ailani from Jefferies maintained a Hold rating on Plug Power (PLUG – Research Report) and decreased the price target to $0.90 from $1.70.
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Dushyant Ailani has given his Hold rating due to a combination of factors impacting Plug Power’s financial outlook and strategic positioning. The company’s revenue estimates for the upcoming quarters are slightly below consensus, and there are challenges in achieving breakeven margins by the end of 2025. Despite management’s focus on cost savings and increasing equipment sales, the path to financial stability remains challenging, particularly with uncertainties surrounding the US Inflation Reduction Act.
Additionally, Plug Power’s strategic pivot towards Europe due to potential changes in US policy adds another layer of complexity. The company is exploring opportunities in several European countries, but the impact of potential tariff changes and reliance on Chinese imports could affect its core product lines. The CFO’s recent share purchase reflects confidence in the long-term strategy, but the current valuation and external uncertainties justify a cautious Hold rating.
In another report released on May 14, Wells Fargo also maintained a Hold rating on the stock with a $1.00 price target.
PLUG’s price has also changed dramatically for the past six months – from $1.920 to $0.788, which is a -58.96% drop .