In a report released on August 12, David Arcaro from Morgan Stanley maintained a Sell rating on Plug Power, with a price target of $0.75.
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David Arcaro has given his Sell rating due to a combination of factors including Plug Power’s mixed financial results and ongoing challenges. Despite the company reporting a revenue increase and improved gross margins in the second quarter, the cash burn was significantly higher than expected, indicating financial instability. Additionally, while the company reiterated its full-year revenue targets, the lack of guidance for the third quarter suggests uncertainty in project timelines and execution.
Moreover, although there are promising revenue opportunities on the horizon, such as potential large orders and increased interest due to the reintroduction of the fuel-cell tax credit, these are not guaranteed to materialize in the near term. The company’s reliance on future cost savings and improved hydrogen pricing to achieve break-even gross margins by the end of the year adds further risk. These factors collectively contribute to the cautious outlook and the Sell rating assigned by Arcaro.
In another report released on August 12, BMO Capital also maintained a Sell rating on the stock with a $1.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PLUG in relation to earlier this year.