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Plug Power Receives $1.66B Loan Guarantee for Hydrogen Pipeline Development

By Don Francis, Editor
May 15, 2024 7:09 AM UTC
Plug Power Receives $1.66B Loan Guarantee for Hydrogen Pipeline Development

HC Wainwright & Co.'s Amit Dayal reiterated their Buy rating on Plug Power (NASDAQ: PLUG). The analyst also maintained a $18 price target. Dayal's move followed Plug Power's announcement on May 14, 2024, that it received a $1.66B conditional commitment loan guarantee from the Department of Energy for a green hydrogen development pipeline.

This funding is seen as positive news for Plug Power as it will enable the company to significantly develop and expand hydrogen fuel infrastructure in the United States. This, in turn, will make it easier for the company to market its fuel cell and hydrogen-based products to consumers, according to the analyst.

Dayal rates the likelihood of the conditional commitment transitioning to final finance at a high level. The analyst cites regulatory tailwinds, the expanding demand for power and electricity, and consumer interest in clean fuel adoption as contributing factors to this optimistic outlook.

Additionally, Dayal predicted that Plug Power's net revenue would experience substantial growth, rising from $924M in 2024 to $25.6B in 2034.

It is worth noting that 100% of the top-rated analysts currently rate PLUG as a Strong Buy or Buy. No analysts consider it a Hold, and there are no recommendations to sell the stock.

Looking at the stock performance, since Plug Power's last quarterly report on March 31, 2024, the stock price has remained relatively stable, with no significant change. However, when comparing the stock's performance year-over-year, it has seen a decline of 56.2%. During this period, Plug Power has trailed behind the S&P 500, which is down 26.8%.

Amit Dayal, the HC Wainwright & Co. analyst, is ranked in the bottom 1% out of 4,585 Wall Street analysts according to WallStreetZen. Dayal's average return stands at -11.6%, with a win rate of 29.4%. The analyst specializes in the Communication Services and Consumer Cyclical sectors, among others.

Plug Power Inc. is a company that delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions. Its applications range from supply chain and logistics to on-road electric vehicles and the stationary power market. The company aims to build a green hydrogen ecosystem, encompassing hydrogen production, storage, delivery, and energy generation for mobile or stationary applications.

The company's product offerings include proton exchange membrane (PEM) fuel cell technologies, fuel processing technologies, and fuel cell/battery hybrid technologies. Plug Power also provides hydrogen and green hydrogen generation, storage, and dispensing infrastructure.

Plug Power's product portfolio consists of GenDrive, a hydrogen-fueled PEM fuel cell system that powers material handling electric vehicles; GenFuel, a system for liquid hydrogen fueling delivery, generation, storage, and dispensing; GenCare, an IoT-based maintenance and on-site service program; GenSure, a stationary fuel cell solution for backup and grid-support power; GenKey, an integrated turn-key solution for transitioning to fuel cell power; ProGen, a fuel cell stack and engine technology; and GenFuel Electrolyzers, hydrogen generators optimized for clean hydrogen production.

The company sells its products through a direct sales force, original equipment manufacturers, and dealer networks. Plug Power has also entered into strategic agreements with various partners, including Airbus, Lhyfe, Edison Motors, Phillips 66, Apex Clean Energy, BAE Systems, and Universal Hydrogen Co. The company was founded in 1997 and is headquartered in Latham, New York.

Is PLUG a Buy, Hold or Sell?

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