Hydrogen trend: “Best company in its class”: JPMorgan sees potential in Plug Power shares | message

—?? The value of the Plug Power share has almost doubled
?? Various drivers of the rally
?? JPMorgan recommends Plug Power

Hydrogen stocks have been enjoying enormous popularity in the markets for a long time, driven in particular by the global fight against climate change. The US fuel cell manufacturer Plug Power has also been in the focus of investors for some time.

Plug Power share + 95 percent

Plug Power ended the past year relatively weak, at a rate of around 34 US dollars, and at the beginning of the new year it was initially still in a downward spiral. But then, in mid-January, the price more than doubled for a short time. The Plug Power share had risen to a multi-year high of 75.49 US dollars, but then fell back somewhat. Nevertheless: Overall, there has been an increase of around 95 percent since the beginning of the year. The paper is currently worth 66.19 US dollars (as of: closing price on February 8, 2021).

Plug Power Rally driver

There are currently some favorable factors on the market for the fuel cell manufacturer: Plug Power is benefiting, among other things, from the new US government that is committed to clean energy. According to TipRanks, this is driving the positive mood among investors towards the company. In addition, Plug Power was able to exceed its 2020 gross revenue target and expects to exceed previous estimates for 2021, TipRanks continues. Another driver is the entry of the South Korean SK Group: This recently acquired around 10 percent of the shares in Plug Power for around 1.5 billion US dollars. This is “one of the biggest, if not the biggest deal we’ve heard of,” quoted Bloomberg Meredith Annex, BloombergNEF analyst. Plug Power also benefits from a joint venture with Renault to develop light, hydrogen-powered commercial vehicles.

JPMorgan: “Best Company In Its Class”

JPMorgan analyst Paul Coster sees Plug Power as “the best company in its class,” as TipRanks quoted. “A good story just keeps getting better. Plug takes advantage of its leadership position in hydrogen energy and mobility solutions by pinning customers and partners who expand the TAM, improve visibility and reduce execution risk. The company is also leveraging its increasing market capitalization to acquire stocks spend and build a balance sheet that allows the company to implement its growth strategy with confidence, “says Coster confidently. The analyst therefore expects “significant profitability in 2023-24”.

“It’s time”

Despite the recent positive development, the Plug Power share appears to be valued too highly, which is why Coster rates it as “neutral”. His target price of 70 US dollars corresponds to a price potential of almost six percent compared to the current level. As TipRanks reports, 10 analysts are currently recommending the share as a buy, two recommend holding the shares. The average target price is $ 60. “We see a pullback as an opportunity to get into this stock,” said TipRank Coster’s assessment.

It remains to be seen whether the company will actually improve in the long term. One thing is certain, however: Plug Power is one of the market leaders in the fuel cell sector, is benefiting from the hydrogen boom and has promising prospects thanks to the cooperation with Renault. “Hydrogen is getting exciting for people today. The time is ripe,” said Plug Power CEO Andy Marsh with conviction.

Finanzen.net editorial team