Hydrogen and fuel cell company Plug Power Inc PLUG shares are riding on renewed interest in the electric vehicle space. An analyst at Morgan Stanley said Monday that the stock has more upside ahead.
The Plug Power Analyst: Stephen Byrd upgraded shares of Plug Power from Equal-weight to Overweight and increased the price target from $10.25 to $14.
The Plug Power Takeaways: At a virtual symposium held last week, Plug Power highlighted several areas of upside, including fuel cell vehicle sales to the German chemicals company Linde; a partnership with Apex; several European growth avenues; and progress in electrolyzer technology, Byrd said in a Monday upgrade note.
Plug Power's multiple addressable markets prompted Morgan Stanley to factor in a higher long-term growth rate for the company, the analyst said.
Morgan Stanley estimates about $1.3 billion in revenue in 2024 for Plug Plower thanks to a greater projected volumes in both auto sales and green hydrogen sales.
Beyond 2024, the company is likely to grow its top line at a 21% pace on average through 2030, Byrd said.
One of the reasons for Morgan Stanley's bullishness is that green hydrogen is becoming economically feasible more rapidly than investors expect, the analyst said.
Plug is particularly well-positioned to economically use green hydrogen in important products that serve very large addressable markets, he said.
Plug is making important progress in addressing these markets through important customer and partner relationships, Byrd said.
"Plug is a key enabler of the greater usage of green hydrogen, which is created from increasingly cheap renewable energy — this essentially allows for the extension of renewable energy usage into the Transportation and Industrial sectors, a result that could greatly reduce the carbon emission profiles of these sectors."
PLUG Price Action: At last check, Plug Power shares were rallying 12.83% to $13.14.
Plug Power CEO Andy Marsh. Courtesy photo.
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