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Investing.com - JPMorgan has reiterated its Neutral rating on Plug Power (NASDAQ:PLUG), currently trading at $1.58 with a market capitalization of $1.78 billion, citing the company’s second-quarter revenue that exceeded estimates despite higher-than-expected cash burn. InvestingPro data shows the company is currently trading near its Fair Value, with 11 key financial indicators available for subscribers.
The hydrogen fuel cell company reported progress in electrolyzer and material handling sales, which supports expectations for half-over-half growth in 2025, despite a challenging last twelve months revenue of $642.22 million. Plug Power also confirmed plans to resume construction at its Texas facility by year-end, potentially supported by Department of Energy loans or project financing.
The company remains on track for sequential gross margin improvement, with the most significant gains expected in the fourth quarter. Management aims to achieve gross margin breakeven by the end of the year through scale improvements, restructuring benefits, and targeted cost initiatives - a crucial goal given the current gross margin of -77.54%. InvestingPro subscribers can access detailed financial health scores and comprehensive analysis in the Pro Research Report, available for over 1,400 US stocks.
Plug Power narrowed its full-year revenue guidance to approximately $700 million, representing about 12% year-over-year growth. The company also identified opportunities to further reduce cash burn through working capital management and margin improvement initiatives.
JPMorgan maintains its cautious stance on Plug Power’s margin trajectory, describing it as a "show-me story" amid challenging fundamentals in the green hydrogen sector. The firm noted that signs of margin improvement, policy clarity, and the first DOE loan draw could support the stock in the near term.
In other recent news, Plug Power Inc. reported a 21% year-over-year increase in revenue for the second quarter of 2025, reaching $174 million. This figure surpassed the analysts’ revenue forecast of $158.48 million. The company’s performance was bolstered by strong sales in its electrolyzer segment and improved gross margins. Oppenheimer maintained its Perform rating on Plug Power, noting the company’s progress toward profitability. The firm highlighted the company’s meaningful strides and the commitment of its customer base during its restructuring process. Plug Power is also targeting gross margin neutrality by the fourth quarter of 2025, a goal that reflects its ongoing efforts to enhance financial performance. These recent developments indicate a focus on strategic growth and operational improvements.
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