Shares of Plug Power (NASDAQ:PLUG) and Powell Industries (NASDAQ:POWL) closed 19.3% and 45.3% higher on Wednesday, January 31. Further, both of these stocks were up in the after-hours. The jump in PLUG stock followed a rating upgrade. At the same time, stellar Q1 performance, margin expansion, and higher dividends pushed POWL stock higher.
Plug Power develops hydrogen fuel cell systems. Meanwhile, Powell Industries provides custom-engineered solutions designed for the management, control, and distribution of electrical energy.
Analyst Expects PLUG Stock to Double
Roth MKM analyst Craig Irwin upgraded Plug Power stock to Buy from Hold on January 31. He anticipates that the value of Plug Power stock will double from its current levels. As a result, Irwin increased the price target to $9 from $4.50.
Referring to the recent tour at PLUG’s Georgia green hydrogen plant, the analyst sees the facility’s smooth ramp-up and successful resolution of major technical issues as positives, alienating worries about the backlog and margin visibility.
Last month, Plug Power announced that it started the production of liquid green hydrogen at its Georgia plant, the largest production facility in the U.S. market.
Is Plug Power a Buy or Sell?
Plug stock sports a Hold consensus rating, reflecting eight Buy, 13 Hold, and three Sell recommendations. While the start of production at its Georgia facility is a positive development, continued cash burn and the need for capital remain a drag.
Plug stock is down about 75% in one year. Given the substantial decline, analysts’ average price target of $7.72 implies 73.5% upside potential from current levels.
Powell Witnesses Stellar Demand in Q1
Powell Industries is witnessing solid demand across its core Industrial end markets, which drove its Q1 revenue and earnings. Its top line increased 53% year-over-year. Moreover, the company delivered earnings of $1.98 per share, compared to $0.10 in the prior year quarter.
It’s worth noting that the company’s backlog doubled to $1.3 billion in Q1. Moreover, new orders and healthy market activity will likely support its top- and bottom-line growth in the coming quarters.
POWL raised its quarterly dividend for the second consecutive year, thanks to its solid financials. It now offers an annualized dividend of $1.06 per share, up from $1.05 per share.
What is the Stock Price Forecast for Powell Industries?
Powell Industries’ stock price has gained over 170% in one year. Moreover, POWL stock has an Outperform Smart Score of nine.
