Plug Power Inc (NASDAQ:PLUG) share skyrocketed over 9.6% in after-hours trading after FBR Capital initiated coverage on the fuel-cell company assigning it a price target of $8. The analysts cited more than one positive catalyst like new orders in the United States, potential expansion in the Europe and launch of hydrogen delivery solutions.
Investors need to dig deeper
Analysts at FBR suggested that the investors should consider things other than what management has done in the past and track the management plans to transform the company into a fully integrated business model. FBR Capital has an Outperform rating on the fuel-cell company.
Recently, various other analyst firms have assigned rating to the Plug Power shares. Roth Capital analysts lowered the price target to $3.75 and assigned Neutral rating to the stock, in a research note to the investors in Thursday, May 15th. Analysts at Citigroup assigned Outperform rating to the stock with a price target of $7.50 in a research note to the investors on Thursday, May 15th. Separately, analysts at Cowen and Company assigned Market Perform rating to the stock with the price target of $7.50. Plug Power, presently, has an average rating of Buy and an average price target of $5.04.
Many catalysts for Plug Power
According to the FBR analysts, the celebrated customer base of the company such as BMW Manufacturing, Coca-Cola Bottling Co. Consolidated (COKE), FedEx Corporation (FDX), Procter & Gamble (PG), and Wal-Mart Stores, Inc. (WMT) would further employ the hydrogen-based forklift fleet solutions.
The Latham, New York-based Company is determined to bring down its cost to beef up the efficiency. For material handlers, renewable energy is cost-effective, as well, as efficient, which would allure the new customers towards Plug Power. Bookings of Plug Power, in the first quarter, came in more than $80 million, double the booking in 2013. International expansion would, also, serve a great cause for the company’s thriving business. Collaborating with HyPulsion to win the European market is an intelligent move as the market is expected to be worth $18 billion by 2015.
Since the beginning of the year, Plug Power stock price surged 156.4% compared to 138.6% and 53.6% respectively, for competitors Ballard Power and Fuel Cell energy. In the pre-market trading, shares were up 1.51% to $32.29.
