Plug Power (NASDAQ:PLUG)
With the market turmoil of last Friday behind them, investors are starting the week on an optimistic note as the S&P 500, Dow Jones Industrial Average, and Nasdaq all rise.
Plug Power (NASDAQ:PLUG), a fuel cell stock that fell last Friday but has since recovered, is one of the companies whose stock price rose today. Plug Power stock gain is somewhat of a surprise, given the associated Wall Street criticism.
Plug Power stock is up 5.3% as of 10:42 AM ET.
What’s the Reason?
Following Friday’s announcement that Plug Power’s revenue prediction for 2022 will likely fall short of previous expectations, the company’s stock came under further scrutiny from bears. Shares closed 6.7% down due to management’s comments discouraging overly optimistic projections for the company’s top line.
However, growth investors see the recent drop in the stock price as a chance to load their portfolios with a company specializing in hydrogen because of its promising future prospects amid rising demand. In contrast to an unfavorable forecast made by an analyst, the Plug Power stock price rose today.
BMO Capital analyst Ameet Thakkar lowered his price objective for Plug Power stock from $31 to $26 while keeping his rating at market performance. JPMorgan and Citigroup have set a $28 price target for the stock over the previous two weeks, so Thakkar’s estimate is significantly more pessimistic.
What’s Next?
Since Plug Power stock opened the day at a price 60% below its 52-week high, it’s evident that hydrogen investors consider it a good buy. Although Plug Power’s low cost is undeniably appealing, it’s crucial to understand the nuances of the story behind it.
While Plug Power (NASDAQ:PLUG) has done well in increasing its revenue, it has been unable to do the same for its profitability or cash flow. So, potential investors should proceed cautiously and pay close attention to the company’s reports during this week’s Plug Symposium.
Meta Description
Friday, after management lowered its revenue outlook for 2022, Plug Power’s stock price plummeted.
Featured Image – Megapixl © Timonschneider
Author Shariq Khan 
