PLUG Stock Hits New 52-Week High on Growing Optimism

PLUG stock

Fuel cell firm Plug Power Inc (NASDAQ:PLUG) has made a lot of progress in 2019 so far, and naturally, there was a lot of expectation with regards to its third-quarter financial results. PLUG stock is up 32% so far this week.

Considering the rise, it is worthwhile taking a closer look at Plug Power to figure out the reason behind the rally yesterday.

Earnings Details

Last week, the company reported third-quarter earnings. In Q3 2019, Plug Power generated revenues of $56.4 million, which reflected a rise of as much as 6% from the year-ago period. On the other hand, the company’s net losses deepened in the quarter and ballooned to $21.2 million from $15.6 million in the year-ago period. The adjusted loss per share stood at $0.09 a share, which was in line with analysts’ expectations.

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PLUG stock is up 6.50% at $3.60 after hitting a new 52-week high of $3.65 earlier in the session.

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Roth Capital is Still Bullish

While it is true that the company’s third-quarter results might have contributed towards the rally, experts believe that a rating upgrade from a Roth Capital analyst might have had a bigger impact.

Analyst Craig Irwin has given a ‘buy’ rating to PLUG stock and has also set a target price of $6.00. The target price indicated an almost 100% upside from the current levels, and it is not surprising that many investors decided to pile on to Plug Power on Wednesday.

The analyst stated that PLUG stock has hit an inflection point, and it seems that investors have been convinced by Irwin’s argument. On the other hand, Plug Power management further mentioned that the company has targeted $1 billion in annual gross billings within the next five years.

In addition to that, the targeted annual EBITDA in the next five years has been set at $200 million. If the company can meet those targets, then it will certainly be reflected on PLUG stock’s price.

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Featured image: DepositPhotos © SergPoznanskiy

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