Plug Power Inc. (PLUG) shares made a new 52-week high of $22.46 in the mid-day trading Wednesday after receiving an upgrade from research firm Oppenheimer, which believes the company is well poised to capitalize on growth opportunities in hydrogen vehicles.
Analysts at Oppenheimer lifted their price target on PLUG stock to $23 per share, up 11.27 percent from the previous price target of $13 per share.
Oppenheimer analysts said in a research note to clients “as investors look for exposure to hydrogen-vehicle growth, we believe (Plug Power) is best positioned to benefit from all key areas in the supply chain with differentiated, commercially proven technologies,” the Oppenheimer analysts said. “We believe valuation is the biggest question for investors as the market negotiates growth multiples in the context of potentially stable tax policy and historically low interest rates.”
The upgrade comes just one day after the company released its financial results for the third quarter and lifted its billing outlook for the full year. Plug Power reported an adjusted loss of 5 cents per share in the quarter, narrower than a loss of 7 cents per share forecasted by analysts. Revenue for the quarter came in at $107 million, above analysts’ average estimate of $106.5 million.
The company’s fuel-cell systems and hydrogen-fueling stations deployment in the third quarter increased by more than two-folds on year-over-year basis. Looking forward, the company now expects billings in the range of $325 million to $330 million for the fiscal year 2020, better than its previous projection of around $310 million. PLUG also reaffirmed its billings outlook of $450 million for 2021.
Plug Power (NASDAQ: PLUG) shares jumped more than 10 percent this morning following the price target hike. Overall, the stock has gained significant value during the current year. PLUG share price has skyrocketed nearly 600 percent on year-to-date basis, including today’s surge.
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