Plug Power (PLUG) — This small-cap alternative energy technology company is focused on fuel cell systems for the industrial off-road market. Recent deals for its GenDrive units have been struck by Ace Hardware and Wal-Mart (WMT).
On July 28, Cowen & Co. raised its price target to $8 from $6 with an “outperform” rating.
Our Profit Scanner service, which is powered by Recognia, highlighted PLUG as one of its featured ideas Tuesday, saying: “The stock’s price has broken upward to confirm a classic chart pattern, offering a target price for the short term in the range of $7.30 to $7.60.”
The chart pattern referenced is that of a bullish flag, and it is usually quite accurate. While shares are likely to be volatile, they offer the chance at higher returns in exchange for taking on the extra risk. My target is $7.50, which would result in 33% gains from current levels.
The company is scheduled to report earnings on Thursday after the open.