So what was it that sent green hydrogen stock Plug Power (NASDAQ:PLUG) blasting up nearly 19% in Tuesday afternoon’s trading session? It turns out that it was largely a matter of production. Plug Power dropped a press release stating that its Georgia plant was now online and actively producing hydrogen. That was a big win in and of itself since the Georgia plant is the biggest one that Plug Power has.
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It’s also the biggest one in the U.S. and will produce 15 tons of liquid electrolytic hydrogen daily. That, reports note, is sufficient to power about 15,000 forklifts a day. Naturally, having that much hydrogen available should improve the bottom line, assuming all of it can be sold, and Plug Power doesn’t see much difficulty in moving that much hydrogen.
But Wait! There’s More!
It wasn’t just hydrogen that gave Plug Power a lift. The company also got some good news in the form of a $1.6 billion loan facility from the Department of Energy. The term sheet negotiation has finally been finalized, and that cash already has destinations. Plug Power is poised to put that cash to work building six new hydrogen production facilities. Hopefully, Plug Power has buyers lined up for all this extra hydrogen it can make. If it does, then it’s poised to see its bottom line improve substantially down the line.
Is Plug Power Undervalued?
Turning to Wall Street, analysts have a Hold consensus rating on PLUG stock based on seven Buys, 15 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 79.87% loss in its share price over the past year, the average PLUG price target of $8.69 per share implies 149.71% upside potential.
