Plug Power Inc (NASDAQ:PLUG) stock has declined more than 40% from its mid-April highs. Its first quarter result wasn’t impressive either, mainly due to a $68.4 million charge related to stock warrants. But the company has strong potential going forward. The company’s bookings have soared to $80 million, double the bookings in 2013. Cowen & Co. analyst Robert Stone has upgraded Plug Power from Market Perform to Outperform. Mr. Stone sees strong revenue growth in the current quarter and profitability by the end of this year.

Plug Power

Plug Power’s GenFuel attracting interest from potential customers

ReportLinker estimates that the fuel cell market will grow at 22% annual rate between 2014 and 2020. Another report suggests that the market will grow to $2.5 billion by 2018, showing an annual growth of 32%. Plug Power Inc (NASDAQ:PLUG) is making a number of moves to tap this growth opportunity. The Latham, New York-based company is investing in hydrogen generations, hydrogen distribution, its sales team, and geographical expansion, says Mitu Anand of Seeking Alpha. The company delivers cost-effective power solutions that reduce operating costs, cut carbon footprint and enhance productivity.

Plug Power Inc (NASDAQ:PLUG)’s GenKey turnkey package simplifies the transition to fuel cell for its clients. GenKey simply combines the GenFuel infrastructure, GenDrive fuel cell units, GenCare service contracts and hydrogen molecule. The recent success of GenFuel has garnered interest from potential customers and partners. Potential partners have recognized that the rising demand for liquid hydrogen in the U.S. is mainly due to fuel cell technology.

Plug Power’s backlog is growing rapidly amid rising demand

Plug Power Inc (NASDAQ:PLUG) forecasts to deliver 650 GenDrive units in the current quarter, up significantly from 165 units delivered in the first quarter. So, it’s clear that the launch of GenKey is boosting growth, says Mitu Anand. Moreover, the fuel cell technology company’s backlog has grown rapidly from 1,439 units to more than 3,700 units by mid-April. Plug Power closed eight GenKey deals in the first quarter.

The company will deploy 1,700 GenDrive units at six sites of Wal-Mart Stores, Inc. (NYSE:WMT). The Kroger Co. (NYSE:KR) has asked Plug Power Inc (NASDAQ:PLUG) to deploy GenKey at two of its sites. In coming months, the company will begin construction of GenFuel infrastructure at Volkswagen AG (ADR) (OTCMKTS:VLKAY) (ETR:VOW)’s Chattanooga, Tennessee plant.

Plug Power Inc (NASDAQ:PLUG) shares gained 2.06% to $4.45 at 11:03 AM EDT on Friday.