In my opinion, the market's revenue and EBITDA expectations for Plug Power this year are realistic. Wall Street's consensus 2024 adjusted EBITDA estimate is even higher at $320 million. In the company's most recent Q3 2021 shareholder letter, Plug Power highlighted that it was "raising revenue guidance for 2022 given acquisitions and commercial traction to $900 million-$925 million." The sell-side's consensus 2022 revenue forecast ($899 million) is at the lower end of the company's top-line guidance.Īlthough PLUG did not provide EBITDA guidance for 2022, the company had earlier set a target of achieving positive non-GAAP adjusted EBITDA of $250 million in 2024. The sell-side analysts' financial forecasts are in line with management guidance. Wall Street also forecasts that PLUG's losses at the non-GAAP adjusted EBITDA level will narrow from -$180 million last year to -$17 million in the current year. Market consensus sees Plug Power's top line expanding by +80% YoY from $499 million in fiscal 2021 to $899 million in FY 2022, according to sell-side financial estimates sourced from S&P Capital IQ. Heading into 2022, PLUG stock is expected to deliver higher revenue and narrower losses. This is why I have turned bullish on the name. I see increased revenue and narrower operating losses for PLUG in 2022, and its current valuations are attractive as compared to peers. I focus on Plug Power's outlook this year in this latest article. My prior initiation article for Plug Power was published on September 30, 2021. I raise my investment rating for Plug Power Inc.'s ( NASDAQ: PLUG) shares from a Hold to a Buy. Plug Power’s gigafactory is located in Rochester, New York, and it reportedly produced 122 megawatts of “electrolyzer stacks for customers and Plug’s green hydrogen plants.” Moreover, prepare for a major scale-up as Plug Power is “on track” to ramp the gigafactory’s capacity up to 100 megawatts per month in the middle of the current quarter, “with plans to further increase output” during the third quarter of this year.Onurdongel/iStock via Getty Images Elevator Pitch This gigafactory features over 2 gigawatts of electrolyzers, 60,000 fuel cell stacks and 2.5 gigawatts of output capacity. I’m referring to Plug Power’s gigafactory, where on-site green hydrogen production takes place on a massive scale. Now, it’s time to ask yourself a tough question: Are you willing to overlook Plug Power’s current financial issues? If so, then I invite you to consider the piece of the puzzle that will drive Plug Power’s growth through 2030. Gigafactory Is the Key to Plug Power’s Future Growth In addition, Plug Power reported a widening net earnings loss during that time frame. It’s also problematic that Plug Power’s cash and cash equivalents dwindled from $2.48 billion at the end of 2021 to $690.63 million at the end of 2022. On the other hand, Plug Power has a track record of quarterly EPS misses. Plus, the average price target for PLUG stock is $25.50, which indicates strong upside potential. Out of 21 analysts, 16 gave Plug Power a “buy” rating and no “sell” ratings were observed. Indeed, Plug Power’s well-heeled investors include famous names like Vanguard and BlackRock (NYSE: BLK).įurthermore, Wall Street’s experts generally favor Plug Power. Still, the current Plug Power share price of around $10 seems too cheap, so there’s an opportunity here.Įven though many financial traders gave up on Plug Power, Samuel O’Brient reported that some big-money investors are staying in the trade. I’ll be the first to admit that $60 was too high, too soon. PLUG stock peaked at around $30 last year and, prior to that, traded above $60 per share. PLUG Stock Investors Will Have to Forgive Poor Financials
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