What happened
Plug Power (PLUG 3.11%) disappointed investors with its latest business update, and its shares were punished yesterday. But the stock is rebounding from that 6% drop today after some analysts chimed in who weren't as bearish on the update. As of 3:45 p.m. ET Friday, shares of the hydrogen production and fuel cell company were higher by 3.4%.
NASDAQ: PLUG
Key Data Points
So what
On Wednesday evening Plug CEO Andy Marsh said 2022 full-year sales would grow by about 45% to 50% over the prior year. That meant fourth-quarter sales were estimated to be about $260 million, when analysts had expected about $285 million. But some analysts responded by looking ahead and thinking that 2023 still looks promising for the company as it grows its green hydrogen production business.
Image source: Getty Images.
Now what
Responses to the update shared by Barron's today included Evercore ISI analyst James West writing that it was "full steam ahead in 2023" for Plug Power. West pointed out that construction delays would push benefits from some of Plug's hydrogen production projects into 2023. He noted that revenue guidance for 2023 was still strong, and he rates the shares a buy with a price target of $40 per share. That would represent a huge return from yesterday's closing price of more than 160%.
Separately, Citigroup analyst P.J. Juvekar also thinks the disappointing results from the fourth quarter don't take away from the long-term potential the company has as a leader in growing the hydrogen economy. Juvekar thinks the shares could hit $21, which would still be a big jump from yesterday's closing price of $15.37 per share. A third analyst, J.P. Morgan's Bill Peterson, said he sees Plug shares worth $24 and thinks the company is "well-positioned."
The wave of positive stances on both the company and the stock price has investors taking advantage of the initial negative reaction yesterday. But those interested should remember this is still a highly speculative investment and approach it with a long-term view.
