Analyst Jeff Osborne of TD Cowen maintained a Buy rating on Plug Power, reducing the price target to $4.00.
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Jeff Osborne’s rating is based on Plug Power’s strategic focus on scaling its electrolyzer and material-handling businesses, which are expected to drive future growth and profitability. The company has set ambitious financial targets, including achieving $700 million in revenue by 2025, breaking even on gross margin by the fourth quarter of 2025, and becoming EBITDAS positive by the end of 2026. These targets are supported by management’s emphasis on improving cost structures and cash efficiency.
Plug Power’s management is leveraging its Quantum Leap initiative to target high-value markets and enhance its balance sheet. The company’s growth strategy is centered around increasing electrolyzer sales, improving service margins, and reducing fuel costs, particularly through a recent agreement with Linde. Additionally, efforts to reduce the use of iridium in their products are underway, which could further enhance manufacturing efficiencies and cost savings. These factors contribute to Osborne’s confidence in the company’s potential for achieving its financial goals and justify the Buy rating.
In another report released on November 11, H.C. Wainwright also maintained a Buy rating on the stock with a $7.00 price target.