Text size
Plug Power “could be at an inflection point,” according to HSBC.
Courtesy Plug Power
Plug Power
“could be at an inflection point” as U.S. clean-hydrogen production expands, one analyst team argued.
HSBC analysts initiated coverage of Plug Power stock (ticker: PLUG) at Buy with an $11 price target in a Monday report on the energy sector.
Plug stock is 0.1% lower to $7.44 in afternoon trading.
“We estimate $8 billion in federal stimulus could be unlocked over the next three years (2024-26) to support the U.S. hydrogen industry,” analysts wrote. Alongside Plug, HSBC is also bullish on shares of
Bloom Energy
(BE) and
Chart Industries
(GTLS), which it initiated at Buy with respective price targets of $22 and $212, and started
Ballard Power Systems
stock (BLDS) at Hold.
Plug Power “could be at an inflection point,” should sales align with 2023 guidance, as the government allocates more dollars to clean energy and an uptick in liquid hydrogen production lifts profitability at the company, HSBC wrote.
“Our base case is for Plug and the broader hydrogen economy to grow sharply but miss green-hydrogen production targets established by the Biden administration,” HSBC analysts continued.
It’s been a tough year for the hydrogen-technology stock, with shares down about 40%. In August, the company posted a wider-than-expected second-quarter loss, beat sales estimates and maintained its full-year sales guidance.
Most analysts who cover Plug Power stock are bullish, with 61% rating it at Buy and 39% at Neutral, according to FactSet.
Write to Emily Dattilo at emily.dattilo@dowjones.com