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Should You Buy Plug Power Stock Following These Analyst Updates?

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 20 Jan 2022

Key points:

  • As clean energy stocks start to gather more attention, Plug Power stock is under focus
  • An analyst from Morgan Stanley outlines Plug's strong fundamentals
  • Canaccord Analyst refers to strong ‘execution risks' as a barrier to sustainability

Clean energy stocks are starting to stir up some strong attention; with various government funding and increasing global infrastructure; renewable’s might well be the word of 2022. Plug Power (NASDAQ: PLUG) – the leading figurehead pushing a hydrogen-based framework – has been making prominent progress in establishing a global footprint, formulating consistent partnerships with businesses and industry leaders. 

The market still seems apprehensive about Plug Power’s actual long-term feasibility. PLUG stock has retraced over 60% since January 2021- leaving investors querying the company’s current financial sustainability. Yesterday, following a business update from the company; Morgan Stanley analyst Stephen Byrd seeks to reassure investors that the company’s fundamentals ‘remain intact’.

Byrd also referred to the vicious sell-off in PLUG stock, arguing that the downfall offers a good buying opportunity. This isn’t much of a surprise looking at the rapid growth of the company and its global infrastructure, but also that 2022 could breed energy policies that might drive further volatility – of course, this could also go the other way. 

Read Also: Best Clean Energy Stocks To Buy Now

Over at Canaccord, analyst Jed Dorsheimer shares a different outlook. In the belief that Plug’s ‘execution risks’ are inevitable given the globalized nature of the company’s growth patterns, and the diversity of its products. With this in mind, Dorsheimer lowered the price target of the company from $38 to $25 to reflect the ambiguous risks that might threaten profitability. 

Plug Power has expanded heavily over the last year or so, and 2022 brings a whole new set of goals, but also, as Dorsheimer pointed out, logistical challenges. Current stock levels remain alluring given the clean energy wave that might start to dictate more of the market in the near future, and given that Plug power is undoubtedly the industry leader for Hydrogen-based products.

While Byrd’s $65 price target might appear far-fetched in the short term; investors should bear in mind the rapidly changing industrial landscape, and how well Plug Power is positioned in an industry ready to explode. 

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.