Shares in hydrogen and fuel cell technology company Plug Power (PLUG) dropped 6% in pre-market trading after a leading analyst reiterated a Sell rating on the stock.
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Four-star TipRanks-rated analyst Andrew Percoco of Morgan Stanley also reduced his price target on the stock to $0.50 from $1.25.
Mixed Results
Percoco said he was concerned about the financial outlook of the company, which provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to industries such as material handling, industrial applications, and energy producers.
It recently reported mixed first quarter results with an earnings per share (EPS) loss of -$0.21, which was worse than a loss of -$0.19 expected by analysts. Revenue in the quarter, totaled $133.70 million, which was ahead of the $132 million forecasts. Sales were up 11.2% from a year ago.
In terms of guidance, management said they expect revenue of $160 million at the midpoint for the current quarter. That’s above analysts’ estimates of $158.1 million.
Percoco highlighted its gross margin loss of -55% in Q1 2025 versus a gross margin loss of -132% in Q1 2024 was an improvement but it was significantly lower than consensus estimates. Percoco was also concerned by the company’s “higher-than-anticipated cash burn.”
Funding Uncertainty
Percoco said that these financial challenges were compounded by the uncertainty surrounding future funding. He said that the discontinuation of the 45V clean hydrogen production credit poses a threat to the viability of Plug Power’s green hydrogen projects.
“Additionally, while Plug Power has secured a new credit facility to manage its existing debt, the need for accelerated spending on future projects amid uncertain Department of Energy funding creates further financial strain,” Percoco said.
As such he had reduced the price target “reflecting the increased risks and challenges the company faces in achieving its growth objectives.”
Last week Piper Sandler lowered the firm’s price target on PLUG to $0.80 from $1.10 and kept an Underweight rating on the shares. It said that Plug Power was struggling on the path to corporate profitability.
Is PLUG a Good Stock to Buy Now?
On TipRanks, PLUG has a Hold rating based on 5 Buy, 11 Hold and 5 Sell ratings. Its highest price target is $3.50. PLUG stock’s consensus price target is $1.65 implying an 113.62% upside.

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