After a interval of sustained share losses, Plug Energy (PLUG) inventory has been increase 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 because of the 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 impression shouldn’t be underestimated.
Final month, with shares buying and selling “meaningfully off intra-year highs,” and believing the inventory to be “essentially sturdy and poised to outperform via the remainder of 2021,” Southern picked PLUG for B. Riley’s “Battered Bastion” group. “A principal motive 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 via the last decade ought to end in “sturdy progress charges,” the analyst believes PLUG is “prone to enhance its 2021 steerage 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 steerage 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 “seemingly nonetheless some conservatism” within the expectations from European and North American stationary purposes and electrolyzer and hydrogen gross sales, whereas the largest areas of upside potential are reserved for on-road mobility within the U.S. and huge stationary energy. Bulletins relating to these will “greatest catalyze PLUG’s inventory value.”
Moreover, the corporate also needs to present a extra in-depth look into the not too long ago introduced JV with South Korea’s SK Group. The JV’s aim is to advance using hydrogen as an vitality supply in Asia.
To this finish, Souther sticks with a Purchase ranking, and $45 value goal, suggesting room for 35% progress over the subsequent 12 months. (To observe Souther’s monitor document, click on right here)
Wanting on the consensus breakdown, primarily based on 12 Buys vs. 4 Holds, PLUG inventory boasts a Robust Purchase consensus ranking. The Road excepts the shares to be altering palms for a 36% premium a yr from now, given the typical value goal presently 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 extremely necessary to do your individual evaluation earlier than making any funding.