Plug Power (NASDAQ:PLUG) stock is sinking today on news of an analyst downgrade.
The hydrogen fuel cell company has made big waves amid the green energy boom, demonstrating impressive gains just a few months ago. Since August 2023 it has fallen 20% though, and some experts are concerned. Today, Jordan Levy of Truist Securities issued a “hold” rating for PLUG stock and lowered his price target to $8 per share. Shares have been falling all day as markets react negatively to the news.
But as far as the stock has fallen lately, not all of Wall Street is as concerned about the company’s future.
Let’s dive into Levy’s take and take a closer look at what it means for investors.
What’s Happening with PLUG Stock
This week is off to a rough start for this former clean energy winner. As of this writing, PLUG stock is down more than 10% for the day. Levy’s bearish warning has cast doubt over Plug Power’s immediate future. As he recently stated in a note:
“Ahead of PLUG’s upcoming 10/11 Symposium, we’re updating our estimates to reflect what we forecast to be a more moderate sequential growth profile/margin step-up in 3Q due to timing of H2 production out of GA/TN, a more 4Q weighted electrolyzer shipment cadence, and other adjustments. While we continue to see a meaningful step-up in financial performance, we believe street [estimates] for 2H23 GMs are too high, and see potential for further delays to PTC guidance [amidst] the threat of a gov’t shutdown impacting timing on PLUG’s financing efforts.”
As mentioned, though, Levy isn’t the only expert to weigh in on PLUG stock recently.
Last week, an analyst team at HSBC issued a “buy” rating and an $11 price target, arguing that the stock “could be at an inflection point.” As InvestorPlace contributor Ian Cooper notes, the company also reported record revenue for the second quarter and has forecast further growth. The stock currently holds a “moderate buy” consensus rating on TipRanks with 13 Wall Street analysts maintaining buy ratings and only 6 rating it as a hold.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.