Plug Power (NASDAQ: PLUG) stock plummeted over 10% in the pre-market trading Friday, even though Truist Securities forecasts a bullish price target.
Truist Securities has revised its outlook on Plug Power (PLUG) stock, raising its price target from $3.00 to $4.00 while maintaining a Hold rating. This adjustment comes on the heels of a notable surge in Plug Power’s shares, which have soared by nearly 30% since the company’s annual update on January 23, 2024. Analysts mainly credit the rally to speculation surrounding a potential Department of Energy loan facility and initial production metrics from its Georgia operations.
However, Truist Securities highlights the challenges the company faces, particularly in its endeavors to mitigate cash burn. Analysts caution that the company is expected to reveal substantial cash consumption in its fourth-quarter report.
The securities firm underscored ongoing margin pressures and the potential repercussions of an at-the-market offering. The company has sold about $300 million from a possible $1 billion in the said offering as of February 23, 2024.
Even though Plug Power has seen positive momentum following its annual update, Truist Securities’ analysis suggests that expected financial headwinds will confine the stock’s price within a defined range. The revised price target reflects the firm’s adjusted estimates but maintains the overall Hold rating, signaling a cautious stance on the stock’s near-term prospects.
Plug Power (NASDAQ: PLUG) Stock Movement
PLUG stock plunged 10% in the pre-market trading Friday, after closing a regular trade at $3.53 on Thursday. The traders had exchanged hands with 56,730,772 (56.73 million) shares compared to the average daily trading volume of 45.05 million.
