Analyst Jeff Osborne of TD Cowen maintained a Buy rating on Plug Power, retaining the price target of $4.50.
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Jeff Osborne has given his Buy rating due to a combination of factors including Plug Power’s progress in improving its gross margins and maintaining its financial targets. The company’s management has reiterated their goal to achieve gross margin neutrality by the end of 2025 and to be EBITDAS positive by the second half of 2026, with electrolyzer sales playing a crucial role in reaching these milestones. The demand for electrolyzers remains robust, particularly in Europe, driven by favorable policies and significant projects like the Galp 100MW Sines project, which is advancing as planned.
Another reason for the Buy rating is the company’s strategic moves to secure cash flow, such as signing a letter of intent to monetize electricity rights, which reduces the necessity for raising capital in 2026. Additionally, the reinstatement of the fuel cell investment tax credit is expected to enhance the economic appeal for customers, improving the outlook for 2026. Despite some liquidity challenges and a shift in hydrogen manufacturing strategy, the overall positive developments and strategic initiatives provide a strong foundation for future growth, supporting the Buy recommendation.