For the third day in a row, shares of hydrogen fuel cell pioneer Plug Power (PLUG 0.45%) stock powered higher on Wednesday.
Plug reported Q4 earnings two days ago, as you may recall. Losing (only) $0.06 per share (adjusted) on sales of $225.2 million in Q4, the company beat on both top and bottom lines, igniting a buying frenzy that sent the stock skyrocketing 23%. On Wednesday, the momentum kept going. By the time the closing bell rang, Plug stock was up another 11%.
But earnings aren't the only reason Plug is going up.
Image source: Getty Images.
The other reason Plug popped
Wells Fargo analyst Michael Blum raised his price target on Plug Power stock by 33%, to $2 per share, today. Admittedly, Plug stock now costs closer to $2.50 per share, so the new PT isn't quite as good news as investors are making it out to be. Still, it's an excuse to keep buying.
Blum notes that Plug's recent debt restructuring, in which the company took on new debt to pay off old debt, has strengthened the company's balance sheet, giving Plug access to "$368.5MM in unrestricted cash" and putting the company in a position where it (says it) has enough money to get it "through 2026" without needing to sell more shares.
NASDAQ: PLUG
Key Data Points
Is Plug Power stock a buy?
That's the good news. Now here's the bad:
Plug is promising to turn EBITDA-profitable by the end of 2026. Blum warns end-of-2027 is more likely. Not helping matters is Plug's warning 2026 revenues will grow only 13%, less than half what Wall Street expected.
Forecasting slower growth and greater losses, Blum's keeping Plug stock at "equal weight" despite raising the price target. I'll go even further than that:
I still think Plug stock is a sell.
