Boston, MA 03/04/2014 (wallstreetpr) – Plug Power Inc (NASDAQ:PLUG), the fuel cells supplier for electric forklifts, surged to a record high in more than 30 months after an analyst claimed that the company’s deal with Wal-Mart Stores Inc. (NYSE:WMT) would fetch it more such valuable customers.
Plug Power’s shares increased to $5.34 in the early hours of trading yesterday. It is the company’s highest intraday jump since May 20, 2011. Aside from this the shares increased by $1.15, which is by as much as 24%, when most of the others were drooling. From the 52 week low of 14 cents, the shares are now 4,057%.
Plug Power Inc (NASDAQ:PLUG)’s shares surged after it announced its deal with Wal-Mart Stores Inc. (NYSE:WMT) last week, according to which it is to supply as many as 1,738 forklifts to be installed in Wal-Mart six distribution centers in North America. The company already has 535 Plug systems installations at three of its sites in Canada and the U.S. But the current order almost triples the number of fuel cells it is currently using. The new installation reportedly would take two years. Wal-Mart Stores Inc. (NYSE:WMT) has offered Plug Power Inc (NASDAQ:PLUG) a service contract for six years. Shares surged even higher after an analyst said that more such deals can be expected.
In a note to investors, an analyst at Cowen & Co., Rob Stone wrote that Plug Power could await bulk orders from other customers such as SYSCO Corp (NYSE:SYY), Bayerische Motoren Werke AG (FRA:BMW) and The Kroger Co. (NYSE:KR). He increased his 12 month price estimate from $5 to $5.50. Apart from Wal-Mart, The Procter & Gamble Company (NYSE:PG) and FedEx Corp (NYSE:FDX) are also Plug Power’s customers.
In 2012, the Latham, New York based company had reported sales of only $24.5 million and was on the verge of being delisted by NASDAQ on account of share prices lower than $1.