Plug Power (NASDAQ:PLUG) stock is slipping on Thursday as Citi analysts hit the electric vehicle (EV) charging company’s shares with a downgrade.
That has Citi analysts dropping shares of PLUG stock from a “buy” rating to a “neutral” rating. That brings its rating for the stock down to match the analyst consensus rating of hold based on 21 opinions.
In addition to that downgrade, Citi also reduced its price target for PLUG stock from $12.50 per share to $5 per share. That still represents a potential upside of 14.9% as of yesterday’s close. However, it’s well below the analyst consensus price prediction of $9.83 per share.
What’s Behind the PLUG Stock Downgrade?
According to Citi, Plug Power is facing dangers due to “liquidity challenges.” Citi analysts estimate that the company needs $500 million in cash within the next six months to continue operations. The firm’s experts then predict the company will need additional cash again in the third quarter of 2024.
All of this is bad news for investors, as it raises serious concerns about the near-term sustainability of Plug Power. With those apprehensions comes a 6.4% decrease for PLUG stock on Thursday morning. It’s also worth noting that the company’s shares were down 64.3% year-to-date (YTD) when markets closed yesterday.
Investors who want more of the most recent stock market stories are going to want to keep reading!
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On the date of publication, William White did not hold (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.