Did Plug Power Stock Deserve Today’s Price Pop?

This morning, the stocks of Plug Power (PLUG) – a notable company spearheading the hydrogen energy revolution – experienced a substantial increase, surging by 8.1% as early as 10:10 a.m. Eastern Time.

The surge in Plug Power’s stock price can be easily explained: This morning, Biju Perincheril from Susquehanna upped his price target for Plug stock by a significant 80%, raising it from $1 per share to $1.80. However, the real question is whether this single analyst’s opinion justifies a 8.1% increase in Plug Power’s stock price.

And whether investors should buy Plug Power stock.

Is Plug Power’s pop justified?

The initial question presents a conundrum. While an 80% increase in the price target appears excessively generous and suggests significant alteration within the company, a minor price target adjustment of merely $0.80 does not.

Additionally, it’s noteworthy that following today’s surge in Plug’s share price, the stock now exceeds Perincheril’s estimated value for it – a price of over $1.90 per share.

And Perincheril is only “neutral” on the stock. He doesn’t say you should buy it.

Is Plug Power stock a buy?

I agree with Perincheril’s point in his note on The Fly regarding renewable energy stocks. He argues that those deserving a buy rating should have a significant U.S. manufacturing presence and substantial order books (or “robust backlogs”). Companies like GE Vernova and First Solar fit this description. However, Plug, although having most of its manufacturing assets in the U.S., does not seem to meet the criteria, as it made no mention of a strong backlog in its latest annual report (10-K filing). Instead, the company reported a nearly 30% decline in sales last year, which could indicate that their order book may be decreasing instead.

With a long history of losing money and burning cash, I suspect Plug stock is still a sell.

2025-07-21 18:03

Is Plug Power’s pop justified?

Is Plug Power stock a buy?

Read More