After finding itself the subject of Wall Street's attention yesterday, Plug Power (PLUG -2.85%) once again is on the Street's radar today. With an analyst taking a bullish stance on shares of Plug Power, investors are choosing to follow suit and charge up their portfolios with the fuel cell specialist's stock.
As of 10:31 a.m. ET, Plug Power's stock is up 7.1%.
For the second day in a row, an analyst is waxing bullish on Plug Power; today, it's Stephen Byrd, an analyst at Morgan Stanley, who is energized by the hydrogen company's prospects. Byrd raised his price target to $65 from the $43 target he had set on Oct. 15. According to Thefly.com, Byrd predicated his higher price target on the expectation that the company will significantly grow its hydrogen production and electrolyzer businesses.
The company recognizes hydrogen production as an increasingly important business in the coming years, and it has been forging partnerships over the past few months to help achieve this goal. In late October, for example, Plug Power announced a partnership with Lhyfe to develop a network of green hydrogen production facilities in Europe, leading to a total hydrogen production capacity of 300 megawatts by 2025 and to pursue development of a 1-gigawatt production site. Overall, Plug Power aspires to achieve daily green hydrogen production of 500 tons by 2025 and 1,000 tons by 2028.
Although Wall Street's frequent bullish take on Plug Power's stock may encourage the stock's advocates on Main Street, it's important to recognize that the company still represents a considerable risk for renewable energy investors. The company may excel at growing the top line, but it's far from a certainty that it will be able to achieve comparable earnings growth; therefore, only investors with an ample tolerance for risk should consider a position.