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There’s a more upbeat view on Plug Power’s stock lately.
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The company has rolled out a cost reduction initiative worth $200 million.
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Investors looking at Plug stocks should be prepared for a higher level of risk.
As we close in on 2025, Plug Power (NASDAQ:PLUG) seems to be gaining momentum. Analysts are feeling optimistic about fuel cell stocks, and it appears investors are eager to snap up shares ahead of tonight’s New Year’s celebrations.
As of 10:54 a.m. ET, Plug Power’s stock rose by 2.3%, recovering from an earlier increase of 5.7%.
ClearStreet analyst Tim Moore recently upgraded Plug’s status from hold to buy. He believes that fuel cell stocks are moving toward profitability, which sounds encouraging. He pointed to the company’s significant cost-cutting measures and price increases as potential contributors to positive financial changes.
Moore also mentioned the Allied Green Ammonia contract as a possible boost for Plug Power to achieve favorable adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
With yesterday’s closing price of Plug Power stock at $1.94, Moore’s target price of $3 indicates a possible upside of over 54%.
However, it’s essential to approach this news with caution. Plug has a lengthy track record of not generating profits, so it might make sense to wait and see if their cost reductions are actually leading to better margins. For now, only those with a strong risk tolerance should think about investing in Plug.
Before taking the plunge into Plug Power stock, consider the following:
Our analyst team has spotlighted some stocks they believe are more promising than Plug Power. These picks are seen as having the potential for solid returns in the coming years.
So, if you’re weighing your options, it might be better to explore those alternatives.
