Plug Power Inc (NASDAQ:PLUG) stock has been highly volatile this year, rising to as high as $11 on March 10, and then plunging to less than $4 on Friday, May 9. The fuel cell company hasn’t yet delivered sustainable revenue and earnings growth. While the bull side expects solid revenue growth, bears are expecting further price drops. Citron Research has a $0.50 price target on Plug Power.

Plug Power

Will Plug Power prove bears wrong?

Citron Research noted in its March report that Plug Power Inc (NASDAQ:PLUG) has a history of broken promises and failure to deliver. Global Equities Research analyst Trip Chowdhry said last month that fuel cell cars will be complete failure. His argument is that fuel cell-powered cars go from 0-60 mph in 11 seconds, while Tesla Motors Inc (NASDAQ:TSLA)’s Model S achieves that speed in just 5.4 seconds. Notably, Plug Power doesn’t produce fuel cell cars. The company is focused on forklifts, trucks, and airport support vehicles, where 0-60 mph isn’t a big issue.

Moreover, investors aren’t really happy with Plug Power Inc (NASDAQ:PLUG)’s recent stock dilution. But that was necessary, given the company’s weak balance sheet. Amid uncertainty around its future, the Latham, New York-based company needs to deliver sustainable growth. Plug Power has signed several deals that have increased its bookings significantly. It has won orders from Wal-Mart Stores, Inc. (NYSE:WMT) to supply 1,738 GenDrive units over the next two years.

The latest order from Central Grocers that Plug Power Inc (NASDAQ:PLUG)’s business is gaining momentum. Central Grocers has decided to replace its 2009 fleet, reflecting faith in the high productivity levels of Plug Power’s technology. And the list of customers is growing rapidly with Bridgestone, BMW, The Kroger Co. (NYSE:KR) and Wegmans placing orders.

Plug Power has started showing growth momentum

Last month, Plug Power Inc (NASDAQ:PLUG) signed a deal with Hyundai Hysco to form a joint venture to produce and market fuel cells in Asia. That’s a part of Plug Power’s international expansion plans, and Asia is a market with huge growth potential. The company’s 2014 revenues are expected to jump 144%, followed by a 79% growth in 2015. But its first quarter results set to be announced on May 14 are likely to disappoint investors. Its Q1 revenues are expected to decline 17%. But experts believe that the second quarter revenues will show solid growth.

Some investors may have given Plug Power Inc (NASDAQ:PLUG) a benefit of doubt. But now the company will have to deliver sustainable growth. Second and third quarters will be important because the company’s growth is likely to pick up in these quarters. Plug Power expects to become profitable by the end of this year.

Plug Power Inc (NASDAQ:PLUG) shares inched up 2.69% to $3.82 in pre-market trading Monday.