Analyst David Arcaro of Morgan Stanley maintained a Sell rating on Plug Power, retaining the price target of $1.50.
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David Arcaro has given his Sell rating due to a combination of factors related to Plug Power’s financial and operational outlook. The company has set ambitious financial targets, including achieving EBITDA positivity by the end of 2026 and overall profitability by 2028, which require significant revenue growth and cost reductions. Despite these goals, there are concerns about the company’s ability to meet these targets given the current financial performance and market conditions.
Additionally, while Plug Power has identified new revenue opportunities, such as demand response services and long-term service agreements for electrolyzer projects, these initiatives are still in their early stages and may take time to materialize into substantial revenue streams. The company’s focus on cost management and efficiency improvements is crucial, but the uncertainty surrounding the execution of these strategies contributes to the cautious outlook. As a result, the Sell rating reflects skepticism about the company’s near-term ability to achieve its financial objectives and capitalize on emerging opportunities.
In another report released on November 11, BMO Capital also maintained a Sell rating on the stock with a $1.30 price target.