Oppenheimer Is Bullish On Plug Power After Its Analyst Day - Read Why

Oppenheimer analyst Colin Rusch reiterated an Outperform rating on the shares of Plug Power Inc PLUG.

The company hosted an analyst day highlighting the successful ramp to 100MW/month of production while identifying a series of process improvements that likely can drive close to double the output from the facility.

Plug provided color on recent traction in stationary backup power and EV charging markets, with stationary storage representing 160MW/year of opportunities versus 15MW of FY23 estimate sales, said the analyst.

Management highlighted increasing revenue diversification as proof of the accretive sales opportunities unlocked by PLUG's ecosystem of offerings, noted the analyst.

The company guided to 25% of FY23 revenue from Europe as it continues to expand internationally, with operations on five continents.

Plug plans to double production in 2H as they continue to ramp its Gigfactory in Rochester, New York noting it is on track to reach a 100MW/month run-rate in 2Q23.

The analyst is encouraged by the company's progress in evaluating incremental sources of capital, including detailed discussions with the U.S. DOE around multi-faceted loan support.

The analyst believes PLUG is in the midst of the complex and difficult work of first of kind commercialization at scale of numerous aspects of the hydrogen ecosystem, but continues to be a leader in terms of integrated solutions.

The analyst takes a bullish stance on shares as it appears the company is poised to deliver on margin improvement and being able to demonstrate a clear path to positive operational cash flow.

Price Action: PLUG shares are trading higher by 2.29% at $10.94 on the last check Thursday.