Shares of Plug Power (NASDAQ:PLUG) are up by over 18% today on the heels of an upgrade from Roth/MKM. Analyst Craig Irwin doubled his price target to $9 from $4.50 and upgraded his PLUG stock rating to “buy” from “neutral.” His price target implies an upside of over 100% from current prices.
Irwin raised his price target following a visit to Plug’s liquid green hydrogen plant in Georgia, which is the largest plant of its kind in the U.S. The plant has the capability to produce 15 tons of liquid electrolytic hydrogen per day. Irwin’s visit provided him with “confidence the facility is ramping smoothly and all major technical issues are handled, addressing our prior concerns about backlog and margin visibility.” Plug announced earlier this month that the plant had begun production.
PLUG Stock: Roth/MKM Doubles Price Target to $9
According to Irwin, today marks the plant’s third day of liquefaction, which should result in the first liquid hydrogen delivery very soon. He also expects Plug to confirm a daily liquid hydrogen capacity of 15 tons per day in the coming weeks.
Irwin ranks at #1,280 among 8,695 analysts tracked by TipRanks. He carries a success rate of 45% and an average one-year return of 6.80% for stocks within his coverage.
UBS also adjusted its target on PLUG this morning. Analyst Manav Gupta lowered his price target to $4.50 from $5 while maintaining a “buy” rating. PLUG carries an average price target of $6.60 among 25 analysts with coverage.
Meanwhile, PLUG has surged higher by about 30% during the past five trading days. This is likely due to a short squeeze in addition to the plant news. As of Jan. 24, 158.33 million shares of Plug were sold short out of a total float of 600.72 million shares. That’s equivalent to a high short interest as a percentage of the float of 26.36%. Stocks with a short interest greater than 20% are prime short-squeeze candidates. Furthermore, Plug’s cost to borrow (CTB) fee remains at an elevated 7.79%, although it has now fallen for two consecutive days from a high of 16.71%.
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.
