What happened
Surviving the steep stock sell-offs that pervaded the market on Friday, investors are beginning the week on a bullish note as the S&P 500, Dow Jones Industrial Average, and Nasdaq are all pushing higher.
Included in the names booking gains today is fuel cell stock Plug Power (PLUG -3.11%), which is bouncing back after its fall on Friday. In fact, the stock's rise comes as a bit of a surprise, considering the related commentary from Wall Street.
As of 10:42 a.m. ET, shares of Plug Power are up 5.3%.
So what
Shares of Plug Power came under particular scrutiny among the bears on Friday as the company announced that its 2022 revenue forecast would likely fall short of its original guidance. As a result of management tempering investors' expectations about the company's top-line growth, shares ended the day 6.7% lower.
Today, however, growth investors are recognizing the stock's sell-off as a bargain opportunity and gassing up their portfolios with the hydrogen specialist. The stock's rise today runs contrary to an analyst's pessimistic take.
Ameet Thakkar, an analyst at BMO Capital, reduced the price target on Plug Power's stock to $26 from $31, maintaining a market perform rating. Thakkar's figure is slightly more bearish than the $28 price target that JPMorgan and Citigroup each set during the past two weeks.
Now what
Hydrogen investors are clearly recognizing Plug Power's stock as a bargain, since it started the trading session 60% below its 52-week high. Alluring as the price tag may be, it's important to recognize the complexity surrounding Plug Power's narrative.
The company has excelled at growing its top line, but earnings and cash flow have both failed to achieve the same improvements. Potential investors, therefore, should tread carefully and certainly watch what the company reports during its Plug Symposium this week.
