JPMorgan Cuts Plug Power Price Target By $10 Despite Strong Execution

Although Plug Power Inc.’s PLUG stock came under pressure following the Business Update call, the company seems to be “executing well across its business lines,” according to JPMorgan.

The Plug Power Analyst: Bill Peterson maintained an Overweight rating for Plug Power while reducing the price target from $52 to $42.

The Plug Power Thesis: Although investors were disappointed the company did not preannounce its fourth-quarter results and did not raise projections for 2022, the guidance seems “prudent at this stage” in view of the COVID-19-related supply disruptions, Peterson said in the note.

“Moreover, the demand environment and the company’s growing backlog suggests potential upside to revenue expectations,” the analyst wrote.

“2022 is a critical year for the company to expand its fuel cell customer base, drive leadership and grow backlog in its merchant electrolyzer business, and execute on its initial green hydrogen production buildout,” he added.

Peterson believes Plug Power is well-positioned to become “a clear leader in the global hydrogen economy with attractive market expansion opportunities.”

He added that the price target had been lowered to reflect “a rising interest rate environment.”

PLUG Price Action: Shares of Plug Power had risen by 3.04% to $20.33 at the time of publication Wednesday.

Photo: Courtesy Plug Power