Recurring orders from previous customers and a growing fuel cell market may mean Plug Power has a bright future

Plug Power has had a rough 12 months. It’s been nearly a year since the company’s stock peaked at nearly $11 per share, and it hasn’t even gotten close to that level since then. Year to date, Plug Power stock has struggled to even reach $3 a share, and it doesn’t look like anything will change that anytime soon.

Plug Power Inc: The Bull Case

Of course once a bull on Plug Power, always a bull, or so it seems anyway. In a post on The Street, Harsh Chauhan argued the case for why the hydrogen fuel cell system manufacturer is a buy.

A positive outlook for Plug Power

Recently Plug Power cut its sales guidance for this year, sending shares into a nosedive, but Chauhan thinks the company’s long term outlook is positive. He points out that the hydrogen fuel cell industry is expected to grow rapidly in the next several years, adding that Plug Power has already been benefitting from the growth. He thinks the company’s performances will continue to improve as it sees more client orders and develops more innovative products.

He also says that so far, Plug Power has a very satisfied customer base as it has been seeing big customers like Wal-Mart order more fuel cell systems for their warehouses. Other big-name customers include Kroger, BMW, Volkswagen and Mercedes-Benz.

In addition to receiving more orders from past customers, he says Plug Power is also getting orders from new customers. One such customer is the Memphis Airport, which recently installed the company’s GenFuel hydrogen system for the its ground support equipment.

Plug Power develops new products

Also he says Plug Power continues to develop new fuel cell products that are more efficient, like the air-cooled and liquid-cooled GenDrive stacks. The first liquid-cooled stack is expected to be installed in the fourth quarter of 2016.

Chauhan appears to like fuel cell stocks in general, as he points to comments made about the hydrogen fuel cell industry as a whole by the market research firm Radiant Insights. The report indicates that the stationary fuel cell market was worth $1.2 billion in 2013 but will likely increase to $14.3 billion in the next five years.

As of this writing, shares of Plug Power were down by 1.03% to $2.88 per share.