Analyst Jeff Osborne from TD Cowen maintained a Buy rating on Plug Power and keeping the price target at $3.00.
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Jeff Osborne has given his Buy rating due to a combination of factors that highlight Plug Power’s potential for growth and improvement. The company reported better-than-expected revenue and gross margin for the second quarter of 2025, and management is optimistic about achieving gross margin breakeven by the end of 2025. The focus on Project Quantum Leap, which aims to enhance gross margins, streamline operations, and expand the hydrogen generation network, is a significant driver of this positive outlook.
Additionally, Plug Power’s strategic initiatives in Europe, particularly in the electrolyzer market, are expected to be a major growth driver. The company is also making progress in securing cost savings through a recent hydrogen supply agreement and pricing adjustments in its service business. Despite some challenges, such as the free cash flow burn and funding uncertainties, Osborne sees a clear path for Plug Power to improve its financial performance and achieve positive EBITDAS by the fourth quarter of 2026.