2 Plug Power Analysts On Financial Restatements, Why They're Constructive On The Hydrogen Fuel Cell Stock

Plug Power Inc PLUG shares were pulling back sharply Wednesday after the company announced it will restate its financial statements for the fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020 due to accounting errors. 

The Plug Power Analysts: Oppenheimer analyst Colin Rusch maintained an Outperform rating on Plug Power with a $62 price target. 

Roth Capital analyst Craig Irwin reiterated a Buy rating and $65 price target.

Why Oppenheimer Is Constructive On Plug Power: Plug Power shares will likely trade off on the news, and until the issue is resolved it will remain a modest overhang, Oppenheimer analyst Rusch said in a note.

It is uncertain when the restatement will be resolved, but a speedy resolution is likely, as the company's financial team is working attentively to sort out the issues, the analyst said.

Plug Power reaffirmed its expectations to achieve gross billings of $475 million in 2021, $750 million in 2022 and $1.7 billion in 2024, he said. 

"We remain constructive on PLUG's growth, strategic position, and the strength of its balance sheet to help facilitate growth."

Related Link: Why Plug Power's Lead In Fuel Cell, Hydrogen Space Could Create 'Outsized Winner'

Roth Sees Opportunity In Plug Power: Plug Power's accounting restatement creates a major buying opportunity, Irwin said in a note. 

"Growth investors will have an opportunity today to buy shares in PLUG, where we see abundant catalysts for 2021 that we expect to rapidly restore valuation," the analyst said. 

The analyst sees major milestones for Plug Power's initiatives in fuel cell trucks in 2021. Initial deliveries will likely lift confidence in material revenue visibility by 2023, he said. 

Small stationary fuel cells, according to Irwin, are an emerging opportunity for the company, with customer announcements likely to be made soon.

The company's infrastructure business is also expected to gain traction this year, with announced plans for the first plant near Rochester, New York, the analyst said.

"We expect the stock to continue trading off of incremental datapoints confirming an expanding longer-term business model." 

PLUG Price Action: Plug Power shares were sliding 15.33% to $36.14 at last check. 

Related Link: Plug Power Appoints Former Bloom Energy Exec As CMO: What You Need To Know