Plug Power nasdaq Plug Shares Slide Amidst Wave of Lowered Price Targets

Plug Power (NASDAQ: PLUG) Shares Slide Amidst Wave of Lowered Price Targets

Plug Power (NASDAQ: PLUG) shares fell over 2% on Thursday as multiple firms have lowered their price targets for PLUG stock this week.

This week, multiple companies have slashed their price targets for PLUG stock. Dushyant Ailani, an analyst at Jefferies, has revised his target to $4 from the previous $5 while maintaining a “hold” rating. Ailani had initially set a price target of $12 in August.

Ailani holds the 2,940th position out of 8,688 Wall Street analysts on TipRanks. He maintains a success rate of 25%, accompanied by an average one-year return of 12.50%.

The average price target for PLUG stock, based on assessments from 25 analysts, is $6.60. This implies a potential upside of around 100% from current levels.

PLUG Stock Receives Several Price Target Cuts

On Wednesday, Ameet Thakkar, an analyst at BMO Capital, reduced his price target for PLUG stock to $2.50 from $3.50, simultaneously downgrading the rating from “market perform” to “underperform.”

Earlier this week, Plug Power (NASDAQ: PLUG) disclosed the submission of a final term sheet for a $1.6 billion loan facility from the U.S. Department of Energy (DOE).

Thakkar said,

“However, we see [an] increasingly arduous path between now and when and if DOE funding flows.”

He added,

“Furthermore, even with $1.6 billion in DOE funding we are skeptical of value accretion of PLUG’s additional hydrogen plants.”

On the same day, Evercore ISI analyst James West cut his price target for PLUG from $12 to $9 but kept an “outperform” rating. West underscores that Plug’s liquidity risk has diminished after a $1 billion at-the-market (ATM) offering and the submission of its DOE loan. The analyst additionally highlights the operational status of the company’s Georgia plant and anticipates positive gross margins for the year.

West said,

“Additionally, Plug is significantly lowering capex requirements and plans to not invest in working capital in 2024, which will help the company reduce cash burn by 70%.”

Apart from these, the following firms adjusted their PLUG stock price targets on Wednesday:

  • TD Cowen revised its price target to $7 from $8.
  • Craig-Hallum adjusted its price target downward to $6 from $11.
  • RBC Capital revised its price target to $3.50 from $5.
  • Susquehanna adjusted its price target to $3.50 from $4.50.
  • Piper Sandler increased its price target to $2.80 from $2.30.

Plug Power (NASDAQ: PLUG) Stock Performance

PLUG stock declined -2.16% on Thursday. The traders had exchanged hands with 52,245,252 (52.24 million) shares compared to the average daily trading volume of 42.48 million.