Plug Power (NASDAQ:PLUG) stock is in the red today following several analyst price target changes, most of which were reductions. This includes Jefferies analyst Dushyant Ailani, who lowered his price target to $4 from $5 while maintaining a “hold” rating. Ailani’s previously set a price target of $12 back in August.
On TipRanks, Ailani is ranked at 2,940 among 8,688 Wall Street analysts. He carries a success rate of 25% with an average one-year return of 12.50%.
PLUG stock carries an average price target of $6.60 among 25 analysts with coverage of the stock. That implies upside of around 100% from current levels.
With that in mind, let’s dig in to the other price target changes.
PLUG Stock Receives Several Price Target Cuts
Yesterday, BMO Capital analyst Ameet Thakkar cut his price target to $2.50 from $3.50 while downgrading shares to “underperform” from “market perform.” Earlier this week, Plug announced that it had submitted a final term sheet for a $1.6 billion loan facility from the U.S. Department of Energy (DOE).
“However, we see [an] increasingly arduous path between now and when and if DOE funding flows,” said Thakkar. “Furthermore, even with $1.6 billion in DOE funding we are skeptical of value accretion of PLUG’s additional hydrogen plants.”
On the same day, Evercore ISI analyst James West lowered his price target to $9 from $12 while maintaining an “outperform” rating. West believes that Plug’s liquidity risk has lessened following a $1 billion at-the-market (ATM) offering and the submission of its DOE loan. The analyst also points out that the company’s Georgia plant is now operational, while the company is expected to generate positive gross margins this year.
“Additionally, Plug is significantly lowering capex requirements and plans to not invest in working capital in 2024, which will help the company reduce cash burn by 70%,” said West.
Here are the remaining firms that adjusted their PLUG stock price targets yesterday:
- TD Cowen lowered its price target to $7 from $8.
- Craig-Hallum lowered its price target to $6 from $11.
- RBC Capital lowered its price target to $3.50 from $5.
- Susquehanna lowered its price target to $3.50 from $4.50.
- Piper Sandler raised its price target to $2.80 from $2.30.
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.
