Treasury guidance deals Plug Power ‘weak hand,’ says Citi

Citi analyst Vikram Bagri keeps a Neutral rating on Plug Power with a $5 price target after the Treasury Department released guidance on the Inflation Reduction Act’s hydrogen production tax credit. Notably, energy certificates from 2028 will need to be matched to hydrogen production on an hourly basis with annual matching permitted until 2027, the analyst tells investors in a research note. The firm says Plug Power had argued for three quarter matching periods at a minimum. Citi believes the question at hand is whether the company’s Georgia plant will qualify for any credit, let alone the $3/kg maximum. It sees “narrow pathways” for the plant and says the hourly matching “deals a weak hand” to Plug Power.