Demystifying Plug Power: Insights From 7 Analyst Reviews

Across the recent three months, 7 analysts have shared their insights on Plug Power PLUG, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $2.63, with a high estimate of $4.00 and a low estimate of $2.00. Highlighting a 23.32% decrease, the current average has fallen from the previous average price target of $3.43.

Interpreting Analyst Ratings: A Closer Look

The standing of Plug Power among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Plug Power. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Plug Power compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Plug Power's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Plug Power's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Delving into Plug Power's Background

Plug Power is building an end-to-end green hydrogen ecosystem—from production, storage, and delivery to energy generation. The company plans to build and operate green hydrogen highways across North America and Europe. Plug will deliver its green hydrogen solutions directly to its customers and through joint venture partners into multiple end markets, including material handling, e-mobility, power generation, and industrial applications.

Plug Power's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Plug Power's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -44.9% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Plug Power's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -183.0%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Plug Power's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -8.87%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Plug Power's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -5.45%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.31, Plug Power adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.