Plug Power (NASDAQ:PLUG) stock is in full focus after Truist Securities analyst Jordan Levy raised his price target to $4 from $3 while maintaining a “hold” rating.
Levy acknowledges that PLUG stock has increased by almost 30% since the company announced on Jan. 23 that its plant in Woodbine, Georgia had begun operations. The plant is the largest liquid green hydrogen plant in the U.S. with the capacity to produce 15 tons of liquid electrolytic hydrogen per day.
On that day, Plug Power also announced that it was in the process of finalizing a $1.6 billion loan with a rate no higher than 6.5% from the U.S. Department of Energy. Chief Financial Officer Paul Middleton added that he expects the loan to be finalized by the third quarter.
“Despite this, we see another big cash burn [quarter] in 4Q with minimal tangible evidence for a step-change improvement in the coming [quarters],” said Levy.
PLUG Stock: Truist Raises Price Target to $4 From $3
Furthermore, the analyst believes that margin headwinds and the company’s $1 billion at-the-market (ATM) offering will keep the price of PLUG stock “range bound.” As of Feb. 23, $300 million of the offering had been sold.
On TipRanks, Levy ranks at 8,540 out of a total of 8,750 Wall Street analysts tracked by the site. The analyst has a success rate of 31% and an average one-year loss of 15.7%.
Meanwhile, B. Riley analyst Christopher Van Horn lowered his price target for PLUG to $6 from $8 this morning while maintaining a “buy” rating.
PLUG stock carries an average price target of $6.51 among 25 analysts with coverage, implying upside of around 90%. The lowest target is $2.50, while the highest is $21.
Plug has confirmed that it will report Q4 earnings on Friday, March 1, before the market open. This will be an extremely important quarter for the company, as it will show whether or not Plug Power has recovered from its disappointing Q3 earnings.
For Q4, analysts expect revenue of $203 million, which would reflect a year-over-year (YOY) decline of 7.97%. The company is also expected to stay unprofitable with a GAAP EPS loss of 41 cents.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
