The stock of hydrogen fuel company Plug Power (PLUG -3.05%) hasn't had a great year so far. Shares are down about 20% year to date, but at least one analyst thinks that makes now a good time to buy. A new outperformance rating has shares jumping today. After moving as much as 5.4% higher early Wednesday, shares trimmed those gains, but still remained almost 4% higher as of 1:25 p.m. EDT.
Analyst Steve Fleishman from Wolfe Research initiated coverage of Plug Power with the equivalent of a buy rating, and believes the stock could reach $34 per share, as reported by StreetInsider.com. That represents more than 30% upside from Tuesday's closing price.
One of the reasons that Plug Power's business may be in a position to grow is the potential passage of a federal infrastructure bill. If it passes in its current form, the bill would provide money to invest in the electric grid and expand renewable energy.
Plug recently broke ground on what will be its fourth green hydrogen plant. The company's new Georgia facility will add to its capacity for hydrogen production. It would join a plant in Tennessee as well as facilities already under construction in south central Pennsylvania and western New York.
Fleishman said in his report, "We think that Plug will be among the first to transition from 'story' to one that has meaningful cash flow and growth." Some investors that want exposure to the space seem to be following his lead today.