Plug Power (NASDAQ:PLUG) Soars on Amazon Deal

Hydrogen fuel cell systems developer Plug Power Inc. (NASDAQ: PLUG) recently revealed that the company has signed an agreement with technology giant Amazon (AMZN). Following the news, the shares of the company increased as investors seemed excited about the new Amazon deal.

Agreement to Benefit Plug and Amazon

Under the terms of the agreement, Plug will supply liquid green hydrogen to Amazon from 2025. The agreement comes as a timely boost for Plug’s 2025 $3 billion revenue goal. Additionally, Amazon’s aim to decarbonize its operations and achieve net-zero carbon emissions by 2040 also gains momentum.

Meanwhile, Plug and Amazon have had a long-standing relationship. Since 2016, Plug has helped Amazon deploy more than 15,000 fuel cells to replace batteries in forklifts across 70 distribution centers. This latest agreement will involve Plug delivering hydrogen to Amazon through its electrolyzers, liquefaction capabilities, and cryogenic tankers from January 1, 2025.

Top Investors Remain Bullish on Plug

TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on PLUG. Further, 4.9% of the top portfolios tracked by TipRanks, increased their exposure to PLUG stock over the past 30 days.

What is the Forecast for Plug Power Stock?

Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 10 Buys and six Holds. The average PLUG price target of $35.56 implies the stock has an upside potential of 18.5% from current levels. Shares have gained 15.8% over the past year.

Key Takeaways

The new deal with Amazon is expected to bolster Plug’s chances of reaching its revenue goals. Meanwhile, the company also stands to benefit from the recent Inflation Reduction Act with increased demand and green tax credits.

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