Plug Power (NASDAQ:PLUG) stock surged about 7.5% on Thursday. The increase can be attributed to the series of orders it has secured this week. The company disclosed the latest order to supply 100 megawatts (MW) of proton exchange membrane (PEM) electrolyzers for an oil refining project in Europe. The strong order flow highlights the rising demand for PLUG’s hydrogen fuel cell technology.
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The electrolyzers will be powered exclusively by renewable energy sources. Also, they are expected to produce 43 tons of green hydrogen per day, contributing to the advancement of decarbonization efforts in the region.
According to the terms of the agreement, Plug Power’s supplied electrolyzers are slated for delivery and installation in 2024. Once operational, these electrolyzers are anticipated to eliminate about 516 tons of carbon dioxide emissions every day.
Additionally, the manufacturing of the PEM stacks for this order will be undertaken at PLUG’s gigafactory located in Rochester, New York. This state-of-the-art facility currently possesses a manufacturing capacity of 100 MW per month for electrolyzer stacks.
PLUG’s This Week’s Order Book
It is noteworthy that Plug Power secured two orders within a week’s time. On Tuesday, the company revealed it will supply two 5 MW PEM electrolyzer systems for green hydrogen projects in Tasmania, Australia.
These electrolyzer systems will be installed at production facilities located in Brighton, near Hobart, and Western Junction near Launceston. Together, they are projected to produce a total of 4,200 kilograms per day of hydrogen.
Is PLUG a Good Stock to Buy Today?
Plug Power’s electrolyzer technology reinforces its position as a key player in the hydrogen industry. The consecutive orders underscore the success and recognition Plug Power has garnered in the market. It also helps solidify its presence and growth trajectory on a global scale.
Currently, analysts have a Moderate Buy consensus rating on PLUG stock. This is based on 11 Buy and seven Hold recommendations. The average price target of $16.98 implies 37.39% upside potential from the current level. The stock is up about 2% so far in 2023.
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