Final week, hydrogen gas cell know-how firm Plug Energy (NASDAQ:PLUG) reported dismal third-quarter outcomes, inviting a slew of worth goal cuts by Wall Avenue analysts. That mentioned, over 70% of analysts masking PLUG inventory stay bullish as the corporate reaffirmed its long-term targets, whereas others see the potential for the corporate over-promising and under-delivering.
PLUG’s Q3 Outcomes Replicate Close to-Time period Issues
Plug Energy’s Q3 income elevated 31% year-over-year to $188.6 million, however loss per share widened to $0.30 from $0.19 within the prior-year quarter. Analysts have been anticipating a lack of $0.24 on income of $240.6 million. Increased prices and development investments weighed on the underside line.
The corporate continues to anticipate its 2022 income to be 5% to 10% under its beforehand issued outlook vary of $900 million to $925 million, as some bigger initiatives are anticipated to be accomplished in 2023 and never this yr because of the timing of the initiatives and provide chain bottlenecks.
In the meantime, Plug Energy is assured about delivering income of $1.4 billion in 2023, pushed by strong development in its purposes and power/electrolyzer enterprise.
Is Plug Energy a Purchase, Promote or Maintain?
Following the print, Truist Monetary analyst Bronson Fleig slashed his worth goal for PLUG inventory to $18 from $32 and reiterated a Maintain ranking. The analyst feels that whereas demand “seems constructive,” PLUG shares would possibly stay range-bound within the near-term.
BTIG analyst Gregory Lewis lowered his worth goal to $25 from $35 however reiterated a Purchase ranking. Lewis believes that larger tools gross sales, elevated hydrogen manufacturing, and waning provide chain points ought to drive optimistic gross margins in 2023.
Total, Wall Avenue is cautiously optimistic on Plug Energy inventory, with a Average Purchase consensus ranking primarily based on 13 Buys and 5 Holds. The common PLUG inventory worth goal of $29.56 suggests 65.2% upside potential. Shares have plunged almost 37% year-to-date.
Conclusion
Plug Energy is optimistic about delivering annual income development of fifty% by means of 2030. Nonetheless, the corporate’s latest efficiency has raised some considerations about its capability to fulfill lofty projections.
Most Wall Avenue analysts are cautious in regards to the near-term prospects. Nonetheless, they imagine in Plug Energy’s long-term potential because of the rising demand for hydrogen gas cell know-how and the advantages for clear power firms underneath the Inflation Discount Act.
