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Investing.com - TD Cowen raised its price target on Plug Power (NASDAQ:PLUG) stock to $4.50 from $3.00 on Friday, while maintaining a Buy rating on the hydrogen fuel cell company. The stock currently trades at $3.40, with a market capitalization of $4.05 billion. According to InvestingPro data, the company shows high price volatility and faces profitability challenges.
The price target increase follows meetings that TD Cowen analyst Jeffrey Osborne held with Plug Power’s CFO Paul Middleton and investor relations representative Roberto Friedlander in Toronto and Montreal this week.
During these meetings, Plug Power’s management emphasized its strategy to achieve profitability through cost reduction initiatives, scaling operations, and pricing adjustments.
The company identified electrolyzers and material handling volumes as key growth drivers, with the electrolyzer pipeline presenting the most promising near-term growth opportunity.
TD Cowen’s new $4.50 price target is based on a multiple of 5 times the firm’s estimated enterprise value to sales ratio for Plug Power in 2027.
In other recent news, Plug Power Inc. announced it has secured approximately $370 million through a warrant exercise agreement with an institutional investor. The deal involves the exercise of warrants issued in March 2025, allowing the purchase of 185,430,464 shares at $2.00 per share. Additionally, Plug Power has entered into a warrant inducement agreement, which includes issuing new warrants for the purchase of up to 185,430,464 shares of common stock. This transaction is expected to close soon, pending customary conditions. In analyst updates, Clear Street downgraded Plug Power’s stock from Buy to Hold due to valuation concerns, setting a price target of $3.50. The firm noted that the current stock price of $4 is not ideal. Meanwhile, Plug Power’s Chief Financial Officer and other executives are actively engaging with investors through non-deal roadshows in Canada, Paris, and Boston. These efforts are part of the company’s ongoing strategy to maintain investor relations.
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