Analyst Vikram Bagri of Citi maintained a Sell rating on Plug Power (PLUG – Research Report), retaining the price target of $1.50.
Vikram Bagri has given his Sell rating due to a combination of factors impacting Plug Power’s financial performance. The company missed its fourth-quarter revenue estimates across all segments, even after multiple guidance reductions. This was compounded by significant non-cash charges related to bad debt, asset impairments, and inventory valuation, resulting in a gross margin of -56%, far below breakeven levels.
Additionally, Plug Power’s free cash flow for fiscal year 2024 was approximately -$1.1 billion, missing its target and necessitating over $1 billion in capital raises. The lack of guidance for fiscal year 2025, coupled with the company’s ongoing need for external capital and no clear path to profitability, further supports the Sell rating. Despite initiatives to reduce costs and improve cash burn, the stock is expected to underperform due to these persistent challenges.