Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
Investing.com - Roth/MKM has reiterated its Buy rating and $3.50 price target on Plug Power (NASDAQ:PLUG), currently trading at $1.53 with a market cap of $1.78 billion, following an investor tour of the company’s Slingerlands, NY facility. According to InvestingPro data, the stock has shown significant volatility with a beta of 2.35.
The research firm noted positive production activity at the Vista facility, observing large materials handling orders in fulfillment, substantial electrolyzer activity, and a GenSure project for a rail customer during meetings with CEO Andy Marsh and CFO Paul Middleton.
Roth/MKM believes investors "under-appreciate the importance" of three large electrolyzer projects Plug Power is pursuing, stating that even one project would occupy production capacity for several years and support positive EBITDA.
The firm indicated that Plug Power’s gross margins and cash flow are "probably tracking well towards recent targets" and maintained its $3.50 price target based on a 5x multiple on 2025 estimated revenue.
Roth/MKM considers the 5x price-to-sales multiple "fair" due to Plug Power’s successful generation of Green Hydrogen PTC (NASDAQ:PTC) in Georgia and improving visibility on gross margin improvements expected in the second half of 2025.
In other recent news, Plug Power Inc. has extended its at-the-market sales agreement with B. Riley Securities, allowing the company to offer and sell shares of its common stock up to $1.0 billion. This amendment extends the agreement’s term until August 15, 2027, or until all shares are sold. Additionally, Plug Power has been the subject of various analyst assessments. Canaccord Genuity raised its price target for the company to $1.25, citing management’s efforts through "Project Quantum Leap" to enhance sustainability and viability. Wells Fargo (NYSE:WFC) also increased its price target to $1.50, reflecting a shift in its valuation model and a slightly higher EBITDA forecast. Conversely, BMO Capital lowered its price target to $1.00, expressing concerns over the company’s cash balance, which has decreased significantly. Plug Power also held a conference call to discuss its second-quarter 2025 results, although specific financial figures were not disclosed.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.