Plug Power (NASDAQ:PLUG) stock has already plummeted by more than 30% in 2024, although shareholders will soon receive a much-needed update. On Tuesday, Jan. 23, the clean energy company will provide an annual business update through a conference call.
The event will take place before the market open and will feature CEO Andy Marsh and Chief Financial Officer Paul Middleton. The pair will also answer questions.
No further details were provided by the company about the update, leaving shareholders to wonder whether it will be positive or negative.
PLUG Stock: Plug Power to Provide Annual Business Update on Jan. 23
PLUG stock has been in a downtrend since August 2023. Shares fell further once the company reported its third-quarter earnings in November, issuing a going-concern warning and removing guidance due to a hydrogen shortage. Plug also noted that it would need to raise capital, from possible sources such as debt, its project partners and a loan from the U.S. Department of Energy.
“As Plug manages through short-term hydrogen supply disruption, we are focused on operational scale, in-house hydrogen generation and policy tailwinds to further the Company’s position as a global leader in the green hydrogen industry,” said Plug in its recent earnings.
During the quarter, net revenue rose to $198.71 million from $188.62 million year-over-year (YOY). Net loss also increased to $726.43 million from $500.54 million.
Meanwhile, Susquehanna analyst Biju Perincheril slashed his price target in half to $4.50 per share last week and cut his rating to “neutral” from “positive.” The analyst’s price target reduction was led by concerns over the company’s need for capital and a lack of improvement in gross margins.
Additionally, Perincheril also lowered his fourth-quarter revenue estimate to $352 million from $427 million, reflecting a 17.5% decline. The current analyst consensus revenue estimate for the fourth quarter sits at $400 million, reflecting yearly growth of 81.3%. For 2024, Perincheril expects $1.6 billion of revenue, down from $1.8 billion. For 2025, he expects $2.5 billion, down from $3 billion.
Plug has an average price target of $8.60 among 26 analysts with coverage of PLUG stock.
On the date of publication, Eddie Pan 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.
