Canaccord has adjusted its price target for Plug Power (PLUG, Financial), reducing it from $1.25 to $1 while maintaining a Hold rating on the stock. The firm recognizes the company's ongoing endeavors to restructure its operations with an emphasis on sustainability and viability. Canaccord expresses optimism regarding management's strengthened commitment to profitability and future cash flow generation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Plug Power Inc (PLUG, Financial) is $2.45 with a high estimate of $7.00 and a low estimate of $0.75. The average target implies an upside of 171.39% from the current price of $0.90. More detailed estimate data can be found on the Plug Power Inc (PLUG) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Plug Power Inc's (PLUG, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Plug Power Inc (PLUG, Financial) in one year is $5.52, suggesting a upside of 510.89% from the current price of $0.9036. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Plug Power Inc (PLUG) Summary page.
PLUG Key Business Developments
Release Date: May 12, 2025
- Revenue: $134 million for Q1, in line with guidance.
- Projected Revenue for Q2: Between $140 million to $180 million.
- Material Handling Business Order: $10 million initial order tied to over $200 million in future opportunities.
- Hydrogen Generation Capacity: 40 tonnes per day with new plants in Louisiana, Georgia, and Tennessee.
- Cost Savings Program (Quantum Leap): Targeting over $200 million in annualized run rate reductions.
- Q1 Cash Burn: Down nearly 50% year over year.
- Equity Raised in March: $280 million.
- Structured Financing Facility: $525 million, part used to retire convertible debt.
- Department of Energy Loan Guarantee: $1.66 billion.
- Unrestricted Cash at Quarter End: Nearly $300 million.
- Tariffs Impact: Increased duties on Chinese imports affecting core product lines.
- European Market Opportunity: Electrolyzer opportunity funnel worth over $21 billion across 2025 and 2026.
- Spain Electrolyzer Capacity Target: 12 gigawatts by 2030, with 2.3 gigawatts pre-awarded.
- UK Hydrogen Allocation Round Two: Shortlisted 1.2 gigawatts of new electrolyzer projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Plug Power Inc (PLUG, Financial) met its financial and operational targets for Q1 2025, delivering solid execution despite a turbulent macro environment.
- Revenue for Q1 2025 was $134 million, in line with guidance, with projections of $140 million to $180 million for Q2.
- The company launched a cost-saving program called Quantum Leap, targeting over $200 million in annualized run rate reductions, with significant savings already executed.
- Plug Power Inc (PLUG) has strengthened its position in Europe, with a strategic focus on the region's dynamic electrolyzer market, driven by regulatory support and investment.
- The company has made significant progress in hydrogen generation, with the commissioning of a 15-tonne per day plant in Louisiana, contributing to a total of 40 tonnes per day in internal production capacity.
Negative Points
- Plug Power Inc (PLUG) faces increased costs due to tariffs on Chinese imports, impacting core product lines like GenDrive.
- The transition in US administration has introduced uncertainty about clean energy programs, affecting the future of hydrogen tax credits and decarbonization incentives.
- The company is actively working with the Department of Energy to advance the loan process amidst changes in administration, indicating potential delays or complications.
- There is a need to navigate the evolving legislative environment regarding the 45V tax credit, which is crucial for the green hydrogen industry in the US.
- Plug Power Inc (PLUG) is experiencing mixed demand in the material handling sector, with automation challenges potentially impacting growth.
