Please ensure Javascript is enabled for purposes of website accessibility

Why Plug Power Stock Popped 6% This Morning

By Rich Smith – Sep 25, 2020 at 12:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two analysts sing Plug's praises after Thursday's sell-off.

What happened

Shares of fuel cell pioneer Plug Power (PLUG -0.13%), which sank yesterday despite a series of arguably positive news releases, are rebounding in Friday trading, rising more than 6% earlier in the day and still up 3.8% as of 11:50 a.m. EDT.

If you own Plug stock, there are at least a couple Wall Street of analysts you can thank for that.

Analyst supporting a rising stock arrow

Image source: Getty Images.

So what

Barclays Capital is one of them. The British banker raised its price target from $12 to $13 a share this morning, reports TheFly.com, which predicts that if the hydrogen economy takes off, Plug shares could trade at a premium, in part because of the role it's taking in producing hydrogen for use in fuel cells.

Now what

Plug remains an unprofitable stock. Nevertheless, a second analyst, B. Riley FBR, also chimed in this morning to assure investors that Plug Power is still "on track" to reach the goals it set earlier this year. Specifically, Plug is targeting annual sales of $1.2 billion, and annual operating profit of $200 million on that revenue, four years from now.

Riley likes the company's diversification of alternative energy revenue streams en route to this goal, citing commercial vehicles powered by fuel cells, stationary fuel cell power production, and, farther up the supply chain, production of hydrogen fuel itself, as all contributing to Plug's chances of success in hitting that $1.2 billion revenue target.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Plug Power Stock Quote
Plug Power
PLUG
$14.90 (-0.13%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
349%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.