Why These Analysts Are Bullish On Plug Power Post-Earnings

Plug Power Inc PLUG reported a larger-than-expected first-quarter GAAP loss even as revenues nearly doubled to $140.8 million.

KeyBanc Capital Markets On Plug Power: Analyst Leo Mariani maintained an Overweight rating and a price target of $40 for the company.

Analyst Mariani said in the note the company’s revenues were 3% below the consensus of $145.1 million, “mainly due to lower than expected sales of fuel cell systems, related infrastructure, and equipment.”

“PLUG reiterated its 2022 revenue guidance of $900M-$925M. However, PLUG was confident that it would generate $925M in revenues in 2022 as the Company expects to do more sales in 2H22 than it did in all of 2021 (~$502M),” the KeyBanc analyst wrote.

“PLUG's 2022 revenue guide also does not include the three new pedestal customers that it is targeting,” he added.

H.C. Wainwright On Plug Power: Analyst Amit Dayal reiterated a Buy rating for the company while keeping the price target unchanged at $78.

“We are largely maintaining our $909M revenue target for 2022, with 20%-25% of this expected to come from international markets,” Dayal wrote in his note.

“We believe fuel margins could remain under pressure in the near term, impacted by volatility in natural gas prices,” the analyst said.

“We believe the company remains focused on building out its green hydrogen generation network supported by recent acquisitions and partnerships (MoU with Olin Corp) with targets of 70 tons per day (TPD) production by the end of 2022, 500TPD in North America by 2025 and 1,000TPD globally by 2028,” he added.

PLUG Price Action: Shares of Plug Power had declined by 8.51% to $15.22 at the time of publication Tuesday.