Plug Power, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on the stock and has a $3.00 price target.
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Amit Dayal has given his Buy rating due to a combination of factors that highlight Plug Power’s strategic improvements and favorable regulatory environment. The company has shown significant progress in enhancing its service margins, which increased to 39% in the second quarter of 2025 from 14% in the first quarter, largely due to its Project Quantum Leap initiative. This initiative includes optimizing the workforce, consolidating facilities, and renegotiating supply contracts, which positions the company towards achieving a break-even gross margin by the end of 2025 and EBITDA break-even by 2026.
Moreover, the regulatory landscape has become more favorable with the enactment of the One Big Beautiful Bill Act, which includes the Section 48E and 45V tax credits. These credits are designed to encourage investments in clean energy and hydrogen production, respectively, and their extension is expected to boost customer interest and provide Plug Power with opportunities to monetize these incentives. The company’s strategic focus on expanding its international customer base, particularly in Europe, Central Asia, and Australia, further supports its growth prospects. The longer-term benefits from the 48E tax credits, without restrictions on local sourcing and zero-emissions, are expected to provide substantial advantages for Plug Power through 2032, enhancing its position in the fuel cell industry.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $3.00 price target.