What happened
Plug Power (PLUG -1.25%) is on fire this week. The stock shot up again today and was trading as high as 6.2% as of 12:20 p.m. ET.
An analyst expects Plug Power stock to more than double in value as global interest in green hydrogen continues to gather steam.
So what
Morgan Stanley has been bullish about Plug Power stock for several months now. In November of last year, analyst Stephen Byrd raised Plug Power stock's price target to $60 a share given the company's focus on growing its hydrogen and electrolyzer business.
Image source: Getty Images.
Yesterday, the analyst at Morgan Stanley cut Plug Power's stock price target to $60 per share but reiterated the stock's rating to overweight. The lower price target still represents a whopping 120% upside from the stock's Tuesday closing price of $27.25 a share.
Meanwhile, green hydrogen is gaining more attention than ever, partly because of the Russia-Ukraine conflict that has sent prices of fossil fuels soaring through the roof and shifted focus on alternative sources of energy.
In a statement released on the morning of March 23, China outlined ambitious plans to boost production of green hydrogen. China aims to produce up to 200,000 metric tons of renewables-based hydrogen per year and have around 50,000 hydrogen fuel cell vehicles by 2025.
Now what
Hydrogen fuel cell technology is evidently gaining traction, and Plug Power is expected to be a key beneficiary given that it's a first mover in the industry. Plug Power expects its revenue to grow almost 80% in 2022 and expects to hit sales worth $3 billion by 2025. For perspective, the company generated $502 million in revenue in 2021.
In short, there's huge growth potential for hydrogen fuel cell companies, and that's what investors in Plug Power were betting on today.
