J.P. Morgan analyst Bill Peterson has maintained their neutral stance on PLUG stock, giving a Hold rating today.
Bill Peterson has given his Hold rating due to a combination of factors impacting Plug Power’s current and future performance. The company’s recent quarterly revenue fell short of expectations, primarily due to customer delays and subdued demand. Despite this setback, there is potential for moderate growth in the coming years, driven by an increase in material handling demand and the deployment of electrolyzers from the existing backlog.
However, the company’s margin improvements are contingent upon successful cost reduction strategies and increased equipment volumes. Additionally, Plug Power faces challenges in securing necessary financing, with the construction of its Texas plant delayed pending additional funding. While there is optimism about potential DOE loan support, alternative financing might be required. Given these uncertainties and the need for consistent execution and liquidity management, the Hold rating reflects a cautious stance, acknowledging both the risks and opportunities present in Plug Power’s business outlook.
According to TipRanks, Peterson is an analyst with an average return of -10.8% and a 33.54% success rate. Peterson covers the Basic Materials sector, focusing on stocks such as United States Steel, Nucor, and MP Materials.