What This Plug Power Analyst Expects From Hydrogen Fuel Cell Company's Jan. 19 Update

Plug Power Inc. PLUG, a hydrogen fuel-cell energy play, had an eventful 2021. An analyst at KeyBanc Capital Markets is optimistic about the company's financial performance in the December quarter.

The Plug Power Analyst: Analyst Leo Mariani has an Overweight rating and a $40 price target for Plug Power shares.

The Plug Power Thesis: At its Jan. 19 business update call, Plug Power is likely to preannounce fourth-quarter revenues that are about 4% above the consensus estimate, Mariani said in a note.

The presumption is based on the company's practice of pre-reporting at these business updates in the past, the analyst clarified.

Related Link: Why This Plug Power Analyst Sees 61% Upside Potential

Plug Power could also raise its revenue guidance from the current level of $900 million to $925 million, Mariani said. KeyBanc currently estimates 2022 revenues to come in at $950 million, 2.7% above the high-end of the guidance and 4.5% above consensus.

The analyst noted the company has already raised its 2022 revenue guidance twice.

Plug Power could also announce a new key customer or a new sales agreement as well, the analyst said. The analyst noted the company has already discussed adding another pedestal customer or a new sales agreement with an associated order.

PLUG Power Price Action: Plug Power shares were slipping 1.66% at $23.05 Tuesday morning at publication.

Photo: Courtesy Plug Power