PLUG stock continues to move higher and recently made a new 52-week high. Let’s analyze the recent developments from Plug Power Inc (NASDAQ:PLUG).
Targets $1 Billion in Revenue
Over the past months, Plug Power has been quietly going about turning around its business, and recently, the company introduced a concrete five-year plan that could change its trajectory altogether. The company is in the hydrogen engine and fuel solutions space, and it goes without saying that this is a high-growth sector. According to Plug Power’s five-year plan, the company believes that it can touch $1 billion in annual revenues by 2024 and also have adjusted EBITDA of $200 million. In addition to that, the company has projected that it could also have $170 million in operating income by the time this five-year period ends.
Considering the fact that Plug Power has projected sales in the $235 million to $245 million range in 2019, this might seem like a significant challenge. However, the company expects that it can successfully sell 25,000 units of its products by 2024 and generate $750 million from that alone. Plug Power also projects $200 million in revenues from the vehicle market and $50 million from the stationary applications space.
PLUG stock is down 2% at $2.98.
Plug Power has recently started industrial-scale development of its fuel cells that are meant for on-road applications, and the company is confident that it is going to pay off in the long-term.
That particular avenue opens up a $100 billion market for Plug Power, so it’s hardly surprising that it is expecting this initiative to pay off in the long run. That being said, it is also important to point out that lithium batteries have now become far more important than hydrogen batteries, and experts believe that renewable energy companies will find the former more suitable for their needs. If lithium batteries do manage to supersede hydrogen batteries in the coming years, then it would a big blow for Plug Power and will cut down the size of the market significantly.
PLUG stock is one of the biggest gainers so far in 2019, with a gain of 125%.
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