BofA update shows where active managers are putting money
Investing.com - H.C. Wainwright has reiterated its Buy rating and $3.00 price target on Plug Power (NASDAQ:PLUG), following the company’s analyst call on Monday. The target represents significant upside from the current price of $1.37, though InvestingPro analysis indicates the stock is currently fairly valued. Analyst targets range from $0.50 to $5.00, reflecting mixed sentiment about the company’s prospects.
The call highlighted changes to clean energy incentives in the One Big Beautiful Bill Act (OBBBA), specifically modifications to the 48E and 45V tax credits that could benefit Plug Power’s operations. According to InvestingPro data, these incentives come at a crucial time, as the company faces challenges with a -77.5% gross profit margin and rapidly declining cash reserves. For deeper insights into PLUG’s financial health and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Section 48E tax credits, designed to encourage investments in clean electricity generation and energy storage, were included in the OBBBA and will be available from 2026 to 2032.
The Section 45V tax credits, which incentivize clean hydrogen production with up to $3 per kilogram, have been extended by two years compared to the version originally passed by the House of Representatives.
These 45V credits will now be applicable for projects commenced before the end of 2027, potentially providing Plug Power with a longer runway to benefit from these hydrogen production incentives.
In other recent news, Plug Power has been actively expanding its global presence with significant developments. The company announced a new 2-gigawatt electrolyzer project in Uzbekistan, in partnership with Allied Green Ammonia, as part of a $5.5 billion green chemical production facility. This expansion reinforces Plug Power’s role in large-scale decarbonization projects and aligns with Allied Green’s vision for a global energy shift. Additionally, Plug Power’s Chief Financial Officer, Paul Middleton, purchased 650,000 shares of the company’s stock, signaling confidence in its long-term strategy. The purchase was disclosed in a filing with the U.S. Securities and Exchange Commission.
Moreover, Plug Power’s stock saw gains following remarks from Senator John Cornyn about a potential plan to rescue a tax credit for hydrogen production. This legislative support could provide financial backing for hydrogen producers like Plug Power. The company is also involved in a previously announced 3-gigawatt electrolyzer project in Australia, expected to reach a final investment decision by late 2025. These recent developments highlight Plug Power’s strategic moves to enhance its position in the renewable energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.