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Investing.com - Wolfe Research has reiterated its Peerperform rating on Plug Power (NASDAQ:PLUG), citing concerns about delayed hydrogen production tax credit rules. The company, currently trading at $1.58 with a market cap of $1.78 billion, has seen its stock decline 25.82% year-to-date. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
The research firm noted that the delay in finalizing hydrogen PTC (NASDAQ:PTC) (45V) rules has significantly slowed market adoption, negatively impacting PLUG’s growth prospects.
Following recent regulatory changes, facilities must now start construction before 2028 to qualify for 45V credits, shortened from the 2032 deadline originally established in the Inflation Reduction Act.
Wolfe Research expressed concern about Plug Power’s hydrogen production roadmap due to the truncated eligibility timeline and waning demand for clean hydrogen.
The firm also highlighted Plug Power’s persistent negative margins and ongoing cash burn, which may necessitate expensive debt or equity dilution, while acknowledging that any meaningful increase in hydrogen project demand could quickly improve the company’s profitability and cash flow due to high operating leverage.
In other recent news, Plug Power reported a 21% increase in revenue for Q2 2025, reaching $174 million and surpassing the forecast of $158.48 million. This revenue growth was supported by strong performance in electrolyzer sales and improved gross margins. The company is aiming for gross margin neutrality by the fourth quarter of 2025. Analysts at JPMorgan reiterated a Neutral rating for Plug Power, noting the company’s revenue exceeded expectations despite concerns over cash burn. Additionally, Oppenheimer maintained a Perform rating, highlighting the company’s significant strides toward profitability. Plug Power confirmed plans to resume construction at its Texas facility by the end of the year, which may be supported by Department of Energy loans or project financing. The company’s customer base remains committed amid ongoing restructuring efforts. These developments reflect Plug Power’s progress in its business operations and strategic goals.
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