Plug Power (PLUG +2.43%) stock is seeing huge gains in Friday's trading in response to bullish analyst coverage. The company's share price was up 37.5% as of 12:30 p.m. ET. At the same point in the day's trading, the S&P 500 had risen 0.5% and the Nasdaq Composite was up 0.2%.
Before the market opened this morning, H.C. Wainwright published new coverage on Plug Power that is helping to cause a surge in the hydrogen-power specialist's valuation. Plug Power stock is now up 178% over the last three months.
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Plug Power surges in response to new price target
With the note that it published this morning, H.C. Wainwright reiterated a buy rating on Plug Power stock. Wainwright's analysts also raised their one-year price target on the stock from $3 per share to $7 per share. Despite the stock already seeing massive gains in today's trading, Wainwright's new price target still implies additional upside of roughly 85%.
What's next for Plug Power?
As noted in H.C. Wainwright's recent coverage, Plug Power could be poised to benefit from rising electricity prices and nuclear-power development trends. Wainwright's analysts also think that high short interest on Plug Power stock could help facilitate big gains.
On the other hand, Plug Power still needs to demonstrate that it can improve its gross margins and establish a long-term path to profitability. Plug Power's incredible rally in recent months may have also been partially powered by meme-stock momentum. While increased support from retail traders shouldn't be viewed as a negative in the grand scheme of things, investors should still understand that this speculative play comes with a lot of risk.
