Shares of Plug Power Inc. (NASDAQ: PLUG) nosedived on Monday following a bearish assessment from brokerage firm Truist Securities.
Jordan Levy, an analyst at Truist Securities, has maintained a Hold rating on Plug Power stock but lowered the price target from $9 to $8. The move comes ahead of the company’s eagerly anticipated symposium scheduled for October 11.
Levy’s revised estimates paint a grim picture, pointing to a slowdown in third-quarter growth due to production delays in the latter half of the year and a higher concentration of electrolyzer shipments expected in the fourth quarter.
In a note to clients, Levy expressed concerns about the company’s financial performance and voiced skepticism regarding Wall Street’s bullish outlook for Plug Power’s gross margins in the second half of 2023. He also hinted at potential setbacks, citing the looming threat of a government shutdown that could disrupt PLUG’s financing efforts and delay its PTC guidance.
Levy’s sentiments underscore a lack of confidence in Plug Power’s immediate prospects, labeling it a “show me story.” He foresees continued pressure on gross margins, particularly from the fuel segment.
Last quarter, Plug Power Inc. (NASDAQ: PLUG) announced that the final commissioning activities were underway at its green hydrogen plant in Georgia. The company anticipates significant reductions in fuel margin losses by Q4 2023 as the Georgia plant reaches its maximum operational capacity.
The situation worsened for Plug Power stock following the breakdown in technical support. The stock plunged below the critical support level at $7.40 this Monday morning and has steadfastly rejected the eight-day exponential moving average, signaling a confirmed downtrend.
The brutal sell-off has resulted in Plug Power’s shares plummeting to a new 52-week low, with the stock currently trading at $6.82. This represents a 10.20% decrease compared to the previous trading session.