TLDR
- Plug Power stock jumped 13% to $1.90 following strong electrolyzer sales that tripled year-over-year to $45 million
- Company reported 21% revenue growth to $174 million driven by demand across GenDrive, GenFuel, and GenEco platforms
- BTIG maintains Hold rating while Roth MKM keeps Buy rating with $3.50 price target
- New partnerships include Brazil’s GH2 Global for hydrogen infrastructure and Uline contract extension to 2030
- Gross margins improved from -92% to -31% year-over-year but profitability remains elusive
Plug Power stock rocketed 13% today, closing at $1.90 as investors cheered the company’s latest business momentum. The hydrogen fuel cell maker has been making waves with accelerating sales and fresh partnerships.
The stock surge comes after analysts highlighted impressive growth in Plug Power’s electrolyzer business. Sales in this segment more than tripled year-over-year to $45 million during the second quarter of fiscal 2025.
This electrolyzer growth helped drive overall company revenue up 21% to $174 million. The increase came from strong demand across Plug Power’s main business platforms including GenDrive, GenFuel, and GenEco.
BTIG analyst Gregory Lewis reiterated a Hold rating on the stock without setting a price target. Lewis pointed to the robust electrolyzer sales as a key driver of the company’s improving performance.
The analyst noted that GenEco’s role in industrial applications continues to expand. This growth reflects increasing adoption of hydrogen solutions in commercial settings.
Despite the revenue gains, profitability remains a challenge for Plug Power. The company’s gross margins improved from -92% in the prior year quarter to -31% in the most recent period.
Analyst Views Mixed on PLUG Stock
Lewis chose not to set a price target given the company’s ongoing profitability struggles. Plug Power continues working on better service execution and competitive hydrogen pricing to improve margins.
Craig Irwin from Roth MKM takes a more optimistic view with a Buy rating and $3.50 price target. Irwin sees positive signs from production activity at the company’s Vista facility.
The Roth analyst highlighted large materials handling orders currently in fulfillment. He also pointed to electrolyzer activity and a GenSure project for a rail customer as growth drivers.
Wall Street’s average price target sits at $1.77, implying potential upside of almost 17% from current levels. This suggests analysts see room for the stock to climb despite current challenges.
Strategic Partnerships Drive Growth
Recent partnership announcements have boosted investor confidence in Plug Power’s direction. The company extended its contract with Uline through 2030, providing revenue visibility.
Plug Power also signed an agreement with Brazil’s GH2 Global to implement hydrogen-powered infrastructure. This international expansion shows the company’s growing global footprint.
These partnerships come as the broader hydrogen sector gains momentum. Clean energy optimism has led to increased trading activity in hydrogen stocks like Plug Power.
Call volume in PLUG stock surged relative to typical daily averages. This heightened options activity often signals increased investor interest and potential for continued price movement.
The combination of accelerating sales, new partnerships, and improving analyst commentary has renewed interest in the stock. Investors appear willing to bet on the company’s hydrogen ecosystem despite profitability concerns.
Plug Power offers end-to-end green hydrogen solutions from production to energy generation. The company produces commercially viable hydrogen and fuel cell production solutions for various industries.
The stock currently trades with a market cap around $2 billion. At under $2 per share, some Wall Street analysts see potential for threefold upside if the company can achieve sustainable profitability.
