Morgan Stanley analyst David Arcaro has maintained their bearish stance on PLUG stock, giving a Sell rating today.
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David Arcaro’s rating is based on several factors impacting Plug Power’s financial performance. The company reported mixed results for the third quarter, with revenue aligning with expectations but facing significant margin pressure due to substantial quantum-leap-related charges. This resulted in a notable adjusted gross loss, indicating ongoing challenges in achieving profitability.
Additionally, while Plug Power has made strategic moves to improve liquidity, such as selling electricity rights to a data center counterparty, the company still faces hurdles in reaching breakeven targets. Despite management’s optimistic outlook for future revenue and margin improvements, the current financial strain and cash burn rate raise concerns about the company’s ability to achieve its long-term financial goals. These factors collectively contribute to the Sell rating assigned by David Arcaro.
In another report released today, BMO Capital also maintained a Sell rating on the stock with a $1.30 price target.