Connect the power supply inc. (NASDAQ: PLUG) announced an acquisition, partnerships, products and updated guidelines during its 2021 Plug Symposium. Here’s what the street had to say.
Plug Power analysts: RBC Capital Markets analyst Joseph Spak maintained an outperformance rating on Plug Power and raised the price target from $ 35 to $ 40.
Morgan Stanley analyst Stephen Byrd maintained an overweight rating and raised the price target from $ 40 to $ 43.
HC Wainwright analyst Amit Dayal maintained a buy rating and a price target of $ 78.
Plug Power A Proxy For 2H Opportunities, RBC states: Plug Power reinforced the idea that it is ready to capitalize on the green hydrogen inflection with new announcements and new partnerships, the RBC Spak analyst said in a note.
The company has guided 2022 revenue in a range of $ 825 million to $ 850 million, up from $ 750 million a year ago and the consensus estimate of $ 760 million, the analyst said. The revenue forecast of $ 3 billion for 2025 is 30% above consensus, he said.
The announced deal with Fortescue Future to manufacture electrolyzer technology in Australia is worth around $ 150 million and is one of the largest purchases of electrolyzers, Spak said.
The analyst sees a potential of half of the transactions to be booked in the second half of 2020, the rest in the first half of 2023.
RBC said Plug Power continues to be a proxy for second half opportunities.
Related Link: Plug Power Shares Charge As Hydrogen Energy Company Announces Twin Partnerships
Plug Power has a strong catalyst path ahead, Morgan Stanley says: As expected, Plug Power has released a very constructive update, including an increase in its 2022 outlook and a stronger-than-expected advice initiation, said Morgan Stanley analyst Byrd.
The $ 3 billion in revenue in 2025 includes approximately $ 1 billion from material handling, $ 500 million from new markets such as electric vehicles and stationary electricity, and $ 1.5 billion from the hydrogen market. green, which includes green hydrogen production and electrolyzers, the analyst said.
A strong catalytic path awaits us, including the enactment of the Green Hydrogen Law in the coming months, the first announcement of stationary electricity, the designation of its fifth flagship customer, additional partnerships / joint ventures and the potential for continuous vertical integration through mergers and acquisitions, Byrd said. .
Why Plug Power will likely start generating operating profit in 2023:
Plug Power’s revenue is expected to grow from $ 481.4 million in 2021 to $ 16.7 billion in 2030, with a nine-year CAGR of 48.3%, said Dayal, analyst at HC Wainwright.
“We believe the company should be able to take its gross margins from negative levels today to 23.1% in 2022 and then reach 36.2% in 2030 as revenues increase,” said the analyst.
Plug Power will likely start generating operating profits in 2023, he said.
PLUG Price Action: Plug Power shares fell 1.79% on Friday, closing at $ 31.24.
Related Link: Why Plug Power’s Lead In Fuel Cell, Hydrogen Space Could Create an “Oversized Winner”