Hydrogen energy is on the rise, paving the way for investors eager to capitalize on this carbon-reducing, cost-effective alternative to traditional energy sources. Plug Power (PLUG), a company producing green hydrogen and fuel cell technology, is leading the charge in this blossoming field. Despite some market skepticism due to previous earnings miss and an awkward growth stage, Plug Power is poised for a successful future in the industry.
It is making hefty investments in the hydrogen-powered electric vehicle market and is expanding its green hydrogen production capabilities.
Recent upbeat news on the company’s selection for participation in the H2DRIVEN project and the $10 million awarded by the U.S. Department of Energy has animated investors and helped to drive the stock up over 15% in the past week. Investors may want to keep an eye on the firm and see if this marks an inflection point for a turnaround in the shares, which have been downward trending over the past three years, shedding 92%.
Plug Power Moving Green Hydrogen Forward
Plug Power is a forerunner in the growing hydrogen ecosystem, creating green hydrogen resources that include production, storage, delivery, and energy generation. It’s the largest buyer of liquid hydrogen and has deployed over 69,000 fuel cell systems and 250 fueling stations. The company plans to construct a green hydrogen highway across North America and Europe and aims to have multiple green hydrogen production plants operational by 2028.
Recently, the company secured a contract with H2DRIVEN to provide Technical Evaluation Phase (TEP) support for 25MW of its Proton Exchange Membrane (PEM) Electrolyzers for a green methanol project in Portugal. The TEP service offers clients detailed technical information and support, helping them advance their projects and make informed Final Investment Decisions (FID). The H2DRIVEN project aims to produce 80,000 tons of green methanol annually, contributing to a cleaner energy future. It is anticipated that the project will be operational by 2026.
Furthermore, Plug Power has been awarded $10 million by the U.S. Department of Energy (DOE) to demonstrate next-generation hydrogen refueling infrastructure for medium and heavy-duty vehicles. The project, HYPER-Fuel, will be a high-flow, direct-fill hydrogen fueling station offering fueling rates exceeding 8 kg/min, a daily capacity of over 2 tonnes, and options for 350- and 700-bar pressurized hydrogen. The station is expected to be operational in 2026 and potentially fuel community vehicles in Pullman, Washington.
Additionally, Plug Power has been selected by the DOE for a total of nine awards for Clean Hydrogen Electrolysis, Manufacturing, and Recycling Activities under the Bipartisan Infrastructure Law, showing the company’s commitment to developing the green hydrogen economy.
What Is the Price Target for PLUG Stock?
The stock has been on a downward volatile ride, scoring a beta of 2.66, shedding 75% over the past year. It trades at the low end of its 52-week price range of $1.60 – $8.80 and shows negative price momentum, though, with the recent runup in price, it’s on the cusp of surpassing the 20-day (1.99) moving average and flipping the momentum positive. It trades at a P/S ratio of 1.85x, roughly in line with the Electrical Equipment & Parts industry average of 1.95x.
Analysts covering the company have struck a cautious tone on PLUG stock. For instance, Citi analyst Vikram Bagri recently reiterated a sell rating and $1.50 price target on the shares, noting that recent management comments suggest that revenue is on pace to fall below guidance for the year.
Based on 15 analysts’ recommendations and price targets, Plug Power is rated a Hold overall. The average price target for PLUG stock is $4.07, representing a potential upside of 98.98% from current levels.
PLUG in Review
Despite its turbulent history and a period of minor growth, Plug Power continues to make strides in the green hydrogen industry. The company’s recent selection for participation in the H2DRIVEN project and DOE awards underscore its carbon-reducing technology and paint an optimistic picture for its future. Although PLUG shares have experienced a downward trend over the past three years, current momentum suggests a potential turnaround could be in the works.
As the company continues to invest in the hydrogen-powered vehicle market and increase its green hydrogen production capabilities, investors may want to monitor the stock for signs of a sustained turnaround in its fortunes.
