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On Tuesday, KeyBanc Capital Markets maintained its Sector Weight rating on Plug Power stock (NASDAQ:PLUG), following the company’s first-quarter earnings report. According to InvestingPro data, the company’s gross margin has remained severely challenged at -77.54% over the last twelve months, though the report showed improvement to -55% in Q1. The stock, currently trading below book value with a P/B ratio of 0.47, has declined nearly 69% over the past year. Despite the positive developments, such as increased electrolyzer deliveries and demand in the European Union, concerns have been raised about the potential impact of the new U.S. Budget Bill. The legislation suggests that 45V tax credits, which benefit companies like Plug Power, may expire at the end of 2025. This adds to existing challenges, as InvestingPro analysis reveals the company’s revenue declined by 19.85% in the last twelve months, with 13 additional key insights available to subscribers.
Plug Power announced its second-quarter revenue guidance, projecting figures between $140 million and $180 million. However, the company refrained from providing a full-year forecast. A significant event in the first quarter was the commissioning of the 15-ton-per-day (TPD) Los Angeles hydrogen plant, which brought Plug Power’s total capacity up to 40 TPD.
The company is also actively working on reducing costs, aiming for over $200 million in annualized run rate savings. Despite these internal efforts, the analyst from KeyBanc highlighted that the prevailing macroeconomic environment warrants a cautious outlook, leading to the decision to maintain the current stock rating without suggesting any price target changes.
In other recent news, Plug Power Inc. reported its first-quarter 2025 earnings, revealing revenue that aligned with its guidance at $134 million. The company achieved a significant reduction in cash burn by nearly 50% compared to the previous year. Additionally, Plug Power successfully raised $280 million in equity and secured $525 million in financing. Looking ahead, the company has projected revenue for the second quarter to be between $140 million and $180 million. Amid these financial developments, Plug Power is targeting gross margin breakeven by the end of the year. The company is also focusing on expanding its presence in the European market, with significant opportunities anticipated in the hydrogen sector. Despite these advancements, Plug Power’s stock experienced a decline in aftermarket trading following the earnings announcement.
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