FBR Bullish on Plug Power Inc (PLUG) Following Meeting with Management
FBR analyst Carter Driscoll and his team have recently met with Plug Power Inc (NASDAQ:PLUG) after the hydrogen fuel cell maker announced its agreement with Amazon, and they came away impressed with how this could change PLUG’s opportunity set. Driscoll rates PLUG an Outperform with a $3.00 price target, which implies an upside of 34% from current levels.
Driscoll noted, “We believe the balance of 2017 will be about (1) executing on the Amazon agreement; (2) fixing its agreement with Wal-Mart; (3) further penetrating existing customers and adding new ones in the material handling segment; and (4) testing and certifying its ProGen engines in China’s commercial vehicle market. In 2018, we think PLUG will focus on driving unit sales in China, developing the local commercial vehicle supply chain there, and reaching operating breakeven. We believe the Amazon deal gives the company better leverage with Wal-Mart, as well as a new brand-name customer to showcase for existing and potential customers. We expect the technology collaboration for both on- and off-road applications could also prove additive to the material handling agreement, though it is difficult to quantify the impact today.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Carter Driscoll has a yearly average return of -5.6% and a 40% success rate. Driscoll has a 34.7% average return when recommending PLUG, and is ranked #4294 out of 4560 analysts.
Out of the 4 analysts polled in the past 12 months polled by TipRanks, 3 rate Plug Power stock a Buy, while 1 rates the stock a Hold. With a return potential of 37%, the stock’s consensus target price stands at $3.06.