- The stock price of Plug Power Inc (NASDAQ: PLUG) has received a price target increase from $60 to $85 by H.C. Wainwright. These are the details.
The stock price of Plug Power Inc (NASDAQ: PLUG) has received a price target increase from $60 to $85 by H.C. Wainwright. And H.C. Wainwright analyst Amit Dayal is maintaining a “Buy” rating on Plug Power shares.
Dayal had cited Plug Power signing two major partnerships within a week. And Dayal said that these deals helped cement Plug Power’s position as a leading hydrogen and fuel cell company. By signing a joint venture deal with Renault in France, Plug Power is poised to achieve a 30% share of fuel cell-powered light commercial vehicles in Europe. And a revenue contribution of about $10 million is expected to materialize from the joint venture as early as 2022. This would be followed by a significant ramp-up in 2024.
South Korean holding company SK Group also announced a partnership with Plug Power recently. SK Group is investing $1.5 billion in Plug Power in exchange for 51.4 million shares of the company at $29.29.
For 2024, H.C. Wainwright increased the estimates for Plug Power’s net revenue and EBIT from $1.7 billion and $347.9 million to $1.9 billion and $418.1 million, respectively. And the contribution from the partnership is expected to increase the company’s revenue growth rate to a 10-year CAGR of 50%. Plus Dayal is also expecting Plug Power to enter into similar partnerships with heavy truck OEMs.
“We believe with partners such as SK Group and Renault, the company essentially has state-level backing to accelerate hydrogen and fuel cell commercialization in Asia and Europe,” said Dayal in a research note via Benzinga.
JPMorgan had less of a bullish take on Plug Power. On Thursday, JPMorgan analyst Paul Coster had initiated a price target of $60. And Coster believes that Plug Power is “fully-valued in our view.”
Riley Securities analyst Christopher Souther increased the price target of Plug Power from $52 to $79 and maintained a “Buy” rating. And Craig-Hallum analyst Eric Stine increased the price target of Plug Power from $60 to $79 and also maintained a “Buy” rating on the shares.