Plug Power shares rose 4.13% to $2.70 at 11:31 AM on Thursday after the company announced a deal with FreezPak Logistics. FreezPak has chosen Plug Power’s full-service GenKey solution for its new cold storage distribution center under construction in Carteret, New Jersey. FreezPak mainly serves the food industry and is one of the leading cold and dry storage providers in the United States.
Plug Power designs a mini-fueling infrastructure for FreezPak
The deal includes 25 GenDrive fuel cells, a GenFuel outdoor hydrogen storage infrastructure, two indoor GenFuel dispensers, along with GenCare service for both hydrogen system and the fuel cells. Plug Power will also supply hydrogen to the facility for ten years. Plug Power is focusing more on GenFuel to expand its total addressable market within material handling.
Q2 Hedge Funds Resource Page Now LIVE!!! Lives, Conferences, Slides And More [UPDATED 7/12]
Simply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds Read More
For FreezPak’s upcoming New Jersey facility, Plug Power developed a mini-fueling infrastructure to meet the needs of its client. The Latham, New York-based company said it has already manufactured and shipped the entire order, but FreezPack’s facility will start operations in the second half of this year. Cold storage providers are a lucrative market for GenDrive because it can perform at maximum efficiency even at low temperatures. In contrast, the performance of lead-acid batteries degrades in cold temperatures.
Roth Capital cuts its price target on Plug Power
Announcement of the deal comes just a couple of days after the fuel cell company reported disappointing fourth-quarter results. Plug Power’s Q4 revenue jumped from $8 million to $21.5 million, but it was below the consensus estimate of $26.3 million. It incurred a net loss of $13.3 million or 8 cents a share, wider than analysts’ projection of just 4 cents in losses.
Following its poor results, Roth Capital analyst Matt Koranda slashed his price target on the stock from $4 to $2.60. Koranda maintained a Neutral rating on Plug Power stock. The research firm’s new price objective indicates that Plug Power is trading at a fair valuation now. Roth Capital noted that Plug Power’s gross margins have declined for two consecutive quarters. Koranda also questioned the company’s ability to boost its margins in the near-term.