Plug Power (NASDAQ:PLUG)
Early today, investors in Plug Power (NASDAQ:PLUG) are likely feeling disappointed as the stock has failed to recover from last week’s 9% drop. The market still hasn’t recovered from analysts’ gloomy focus on fuel cell stock from last Friday.
Plug Power stock price has recovered somewhat from an early decline of 6.4% to be down 2.8% as of 11:25 a.m. ET.
What’s the Reason?
Even though the management of Plug Power convened its annual Plug Symposium last Wednesday to rekindle enthusiasm for the company’s future, it seems that analysts were not too enthused. Canaccord analyst George Gianarikas took up company coverage on Friday, giving it a “hold” and setting a $16 price target on Plug Power stock. According to TheFly.com, Gianarikas is skeptical that Plug will be able to meet its ambitious targets, which include producing 500 and 1,000 tons of liquid green hydrogen per day by 2025 and 2028, respectively.
Wells Fargo analyst Michael Blum also left the Plug Symposium uninspired about the stock. Blum lowered his price target for Plug Power stock from $29 to $21 before the weekend and kept his equal weight recommendation unchanged. Although Plug Power anticipates $20 billion in sales by 2030, Blum is not convinced. Blum, via TheFly.com, calls the 2030 prediction a “blue sky scenario” that is “ambitious.”
In 2021, Plug Power announced sales of $502.3 million.
What’s the Reason?
Last Wednesday, Plug Power stock gave a presentation to analysts in an attempt to drum up excitement for its fuel cell and hydrogen manufacturing companies. In a similar vein, investors are starting to have second thoughts about the company’s optimistic sales projections and are instead looking elsewhere, at businesses where the growth prospects appear more realistic.
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Following last week’s investor event, two analysts issued pessimistic forecasts for Plug Power’s stock.
Featured Image – Megapixl © Timonschneider
Author Shariq Khan 
