Plug Power stock price target raised to $1.50 from $1.00 at Wells Fargo

Investing.com - Wells Fargo has raised its price target on Plug Power (NASDAQ:PLUG) to $1.50 from $1.00 while maintaining an Equal Weight rating on the stock. The company, currently trading at $1.66 with a market capitalization of $1.92 billion, is showing signs of significant volatility according to InvestingPro data.

The price target increase primarily reflects a shift forward in the base year of Wells Fargo’s valuation model to 2026 and a slightly higher EBITDA forecast for the hydrogen fuel cell company.

Wells Fargo lowered its 2025 EBITDA estimate for Plug Power to ($510 million) from ($433 million), citing higher projected general and administrative expenses.

The firm raised its 2026 EBITDA estimate to ($171 million) from ($197 million), attributing the improvement to higher projected material handling sales due to the restoration of the fuel cell investment tax credit in the Omnibus Budget and Bipartisan Budget Agreement (OBBBA).

Despite the price target increase, Wells Fargo maintained its Equal Weight rating on Plug Power, citing "low visibility around positive profit margins" for the company.

In other recent news, Plug Power held a conference call to discuss its second-quarter 2025 financial results, although specific figures were not disclosed in the report. Analysts have provided varied assessments of the company’s financial health and future prospects. BMO Capital has lowered its price target for Plug Power to $1.00, citing concerns over the company’s reduced unrestricted cash balance, which has fallen to $141 million following a significant cash burn in the second quarter. Meanwhile, H.C. Wainwright has maintained a Buy rating with a $3.00 price target, highlighting improved service margins, which increased to 39% in the second quarter from 14% in the first quarter, thanks to the Project Quantum Leap initiative.

Wolfe Research continues to hold a Peerperform rating, expressing concerns about delays in hydrogen production tax credit rules, which could hinder market adoption and growth. JPMorgan has reiterated its Neutral rating, noting that Plug Power’s second-quarter revenue surpassed estimates despite a higher-than-expected cash burn. The company reported progress in sales of electrolyzers and material handling equipment and plans to resume construction at its Texas facility by year-end, potentially aided by Department of Energy loans or project financing. These developments reflect the ongoing challenges and opportunities facing Plug Power in the evolving energy market.

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