Plug Power Stock (NASDAQ:PLUG)
Even if Plug Power (NASDAQ:PLUG) is extending its partnership with FreezPak Logistics, investors are pushing the sell button on the fuel cell specialist on Wednesday. However, it is somewhat unexpected that the Plug Power stock would decline on the same day that a fresh analyst presented a positive outlook.
Plug Power stock was down 6.2% at 12:08 PM ET.
What’s the Reason?
Since 2014, FreezPak Logistics has been Plug Power’s client, and it seems that the business is doing well enough that FreezPak Logistics wants to extend its partnership with Plug Power. On Wednesday, Plug Power stock announced plans to implement fuel cell and hydrogen storage and fuelling infrastructure at nine additional locations, including four sites presently in operation and five more sets to launch in 2023. These locations will house a total of around 400 lift trucks.
The agreement’s monetary details were not made public.
Investors discovered on Wednesday that one analyst had a strong outlook on Plug Power stock due to the company’s expanded position in supporting FreezPak’s operations. Still, they seemingly paid little attention to this news. Based on Tuesday’s closing price of $19.11, Sam Burwell of Jefferies commenced coverage on the company with a buy rating and a price target of $28 on Plug Power stock, representing a potential upside of around 47%.
What Should You Do Now?
No one should have been surprised by the cold reaction of investors to Plug Power’s announcement of its strengthened partnership with FreezPak. Since neither company disclosed any details about the deal’s financial parameters, investors may be skeptical about how much it would help Plug Power stock boost its bottom line.
Shares of this growth company have skyrocketed in recent years, and the stock has gained what amounts to a cult following among investors. Plug Power stock price, though, seems to already reflect investors’ bullish expectations. Investors are hoping to see improvements in the bottom line soon to match the growth seen at the top of the income statement for Plug Power.
Featured Image- Megapixl @ Rafaelhenriquepress
Author Shariq Khan 
