Shares of fuel cell company Plug Power (NASDAQ:PLUG) jumped as much as 11.8% in early trading Wednesday after getting a big analyst upgrade. Shares were bouncing near new highs at 11:20 a.m. today and may still move higher from here.
The surge in shares was driven by H.C. Wainwright raising its price target on the stock from $6 to $14 and calling the company a "clean energy juggernaut." This follows management increasing its 2024 revenue guidance from $1.0 billion to $1.2 billion after buying United Hydrogen and Giner ELX.
Outside of the upgrade, Plug Power CEO Andy Marsh gave an interview to Benzinga where he touted a bright future for hydrogen. The interview didn't break any ground, but had Marsh highlighting why he thinks fuel cells will be great for fleet vehicles around the world, a market Plug Power has yet to really tap.
I wouldn't read too much into today's pop in shares. Analyst upgrades can move stocks short term, but don't fundamentally change the trajectory of a company long term. What I would like to see is real progress on the 2024 goals over the next few years to prove to investors that Plug Power can live up to its clean energy goals. After years of losing money, the hope is that Plug Power will finally be able to turn a corner financially.