What happened

Shares of Plug Power (NASDAQ:PLUG) gained 6.5% as of 10:30 a.m. EST Tuesday. The move comes as the stock has doubled just since the start of the year. Several recent business announcements have been driving momentum in the stock.

So what 

The company provided investors with a business update today, saying it has exceeded its 2020 guidance and raising targets for 2021 and beyond. 

H2 tank representing hydrogen fuel

Image source: Getty Images.

Plug Power said today that it has exceeded its gross billings target for 2020 and is also raising estimates for 2021 and 2024. It now sees 2021 billings of $475 million, up from $450 million. Looking further ahead, the company said it now sees 2024 gross billings of $1.7 billion, an increase of more than 40% from prior estimates. 

Now what

Plug Power has recently also announced deals with South Korea's SK Group and French automotive company Renault (OTC:RNSDF) that have helped boost shares. The company is having a conference call today to detail the business update, which should expand on the previously announced agreements. 

The agreement with SK Group will give the South Korean company a 10% stake in Plug Power with a $1.5 billion investment. Separately, the company and the French automaker announced the intention to create a 50-50 joint venture (JV) to integrate Plug Power's fuel cell technology into commercial vans in Europe. 

Hydrogen fueling is still in early stages but is already seeing interest. Investors should be aware that the stock has already reacted, however, and carefully monitor the company's business to follow whether the sales estimates come to fruition to help justify today's valuation. 

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