SoFi CEO enters prepaid forward contract on 1.5 million shares
Tuesday, Oppenheimer reiterated its Perform rating on Plug Power stock (NASDAQ:PLUG), following the company’s ongoing challenges with revenue and margins. The company’s struggles are evident in its financial metrics, with a significant -91.7% gross profit margin and a -29.5% revenue decline in the last twelve months. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $1.45. Oppenheimer’s analysis acknowledges the company’s efforts in cash management and foresees potential savings in 2025. The firm anticipates growth in the warehouse and material handling markets, which could benefit Plug Power, noting the company’s competency in operating electrolyzers at full capacity.
Despite these potential upsides, Oppenheimer points out that Plug Power is still working to reduce its inventory levels and may require an additional capital source to sustain operations into 2026. While the company maintains a current ratio of 1.97, indicating sufficient liquid assets to meet short-term obligations, InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model. The firm highlights several options available to Plug Power, including incurring new debt, utilizing its at-the-market (ATM) offering, or leveraging the Department of Energy (DOE) loan guarantee for related projects.
In their commentary, Oppenheimer analysts stated, "While PLUG continued to disappoint on revenue and margin, the company has taken necessary actions on cash management and appears to have significant additional savings coming in 2025." InvestingPro data reveals concerning trends, with the company burning through cash rapidly and carrying total debt of $1.08 billion. Subscribers can access 12 additional ProTips and comprehensive financial analysis in the Pro Research Report. They further added, "We continue to see the company working down inventory levels but still needing another source of capital to bridge into 2026."
The firm remains cautious, adopting a wait-and-see approach for Plug Power to demonstrate improved revenue growth and margins. The company’s EBITDA stands at -$1.03 billion, while analysts project sales growth for the current year despite the challenging environment. The assessment reflects a neutral stance, with an emphasis on the company’s need to deliver tangible results in its financial performance to gain more confidence from investors and analysts alike.
In other recent news, Plug Power reported its fourth-quarter 2024 earnings, which showed a greater-than-expected loss and revenue that fell short of forecasts. The company recorded an earnings per share (EPS) of -$0.2385, missing the anticipated -$0.2249, while revenue stood at $191 million, significantly below the expected $254.7 million. For the full year, Plug Power’s total revenue was $629 million, reflecting ongoing challenges in meeting market expectations. In response to financial difficulties, Plug Power has announced a strategic shift with plans to cut costs by $150-200 million annually, evenly split between cost of goods sold and operational expenses. BMO Capital Markets has reacted to Plug Power’s fiscal performance by reducing its stock price target from $1.60 to $1.40, maintaining an Underperform rating. The firm cited the company’s significant revenue decline and gross margin losses as contributing factors to this decision. Looking ahead, Plug Power aims to achieve a positive gross margin by the fourth quarter of 2025 and has set a Q1 2025 revenue guidance between $125 million and $140 million. The company continues to focus on strategic initiatives, including the launch of a hydrogen facility in Louisiana, expected in the second quarter of 2025.
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