After a interval of sustained share losses, Plug Energy (PLUG) inventory has been build up momentum as soon as once more. The previous week has seen shares rise because the market seems to be warming to the hydrogen specialist as soon as extra.
One of many causes for the uptick is as a result of pleasure surrounding PLUG’s third annual symposium, which is able to happen on Thursday (Oct 14).
Whereas current occasions have seen the inventory selecting up steam, B. Riley’s Christopher Souther thinks the occasion’s potential influence shouldn’t be underestimated.
Final month, with shares buying and selling “meaningfully off intra-year highs,” and believing the inventory to be “basically sturdy and poised to outperform by means of the remainder of 2021,” Southern picked PLUG for B. Riley’s “Battered Bastion” group. “A most important purpose for the choose was our expectation that the symposium would act as a optimistic catalyst for near-term inventory efficiency,” the analyst defined.
Given the energy in materials dealing with and the extra alternatives opening up in adjoining markets which by means of the last decade ought to end in “strong development charges,” the analyst believes PLUG is “prone to enhance its 2021 steering and 2024 targets.”
This shall be an extra increase to the one made with the 2Q earnings launch, when the corporate elevated its 2021 gross billings steering to $500 million, suggesting a 50% uptick from 2020’s ranges. Regardless of 2021 being an funding yr, Southern believes the corporate is “forward of schedule” on its 2021 gross billings goal.
As for the $1.7 billion 2024 goal, Souther thinks there’s “possible nonetheless some conservatism” within the expectations from European and North American stationary functions and electrolyzer and hydrogen gross sales, whereas the largest areas of upside potential are reserved for on-road mobility within the U.S. and enormous stationary energy. Bulletins concerning these will “greatest catalyze PLUG’s inventory value.”
Moreover, the corporate must also present a extra in-depth look into the lately introduced JV with South Korea’s SK Group. The JV’s aim is to advance the usage of hydrogen as an vitality supply in Asia.
To this finish, Souther sticks with a Purchase score, and $45 value goal, suggesting room for 35% development over the following 12 months. (To look at Souther’s monitor report, click on right here)
Wanting on the consensus breakdown, based mostly on 12 Buys vs. 4 Holds, PLUG inventory boasts a Sturdy Purchase consensus score. The Avenue excepts the shares to be altering fingers for a 36% premium a yr from now, given the typical value goal at the moment stands at $40.40. (See PLUG inventory forecast on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is vitally essential to do your individual evaluation earlier than making any funding.
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