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Investing.com - Canaccord Genuity raised its price target on Plug Power (NASDAQ:PLUG) to $1.25 from $1.00 on Thursday, while maintaining a Hold rating on the hydrogen fuel cell company. The stock, currently trading at $1.65 with a market capitalization of $1.9 billion, has shown strong momentum with a 9.93% gain over the past week.
The research firm cited management’s ongoing efforts through "Project Quantum Leap" to reshape the company with a focus on sustainability and viability as reasons for the target increase. According to InvestingPro data, these efforts are crucial as the company faces challenges with negative gross margins of -66.51% and rapid cash burn.
Canaccord noted that Plug Power is positioned to achieve gross margin breakeven on a run-rate basis in the fourth quarter of 2025 and "bridge to positive EBITDA in the 4Q26."
The firm expressed encouragement regarding management’s intensified focus on profitability and future cash generation, particularly as the restructuring plan is "beginning to bear fruit."
Despite the price target increase, Canaccord maintained its Hold rating, stating it continues to await "more stout profitability proof points, long-term revenue growth and DOE loan discussions."
In other recent news, Plug Power has been in the spotlight due to several developments. The company held a conference call to discuss its second-quarter 2025 results, although specific financial figures were not disclosed in the report. Analysts have been actively adjusting their outlooks on the company. Wells Fargo raised its price target for Plug Power to $1.50, reflecting an updated valuation model and a slightly higher EBITDA forecast. In contrast, BMO Capital lowered its price target to $1.00, expressing concerns over the company’s dwindling unrestricted cash balance, which fell to $141 million after a significant cash burn in the second quarter.
H.C. Wainwright maintained its Buy rating on Plug Power with a $3.00 price target, citing improvements in service margins and reduced regulatory uncertainty as positive factors. The service margins increased significantly due to the company’s Project Quantum Leap initiative, which optimized workforce and reduced costs. Meanwhile, Wolfe Research reiterated a Peerperform rating, highlighting concerns about delays in hydrogen production tax credit rules, which could impact the company’s growth prospects. These recent developments provide investors with a range of perspectives on Plug Power’s current financial health and future outlook.
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