Plug Power Inc (NASDAQ:PLUG) shares dipped nearly 3% today after the hydrogen fuel cell maker released its fourh-quarter earnings report that slightly missed Wall Street expectations. Specifically, PLUG reported losses per share of $0.08, missing consensus estimates of ($0.07) per share. Revenue for the quarter came in at $33.7 million, compared to consensus estimates of $33.8 million.
In conjunction with the earnings announcement, Canaccord analyst Chip Moore reiterated a Buy rating on PLUG with a price target of $5.00, which implies an upside of 173% from current levels.
Moore commented, “No surprises in the final Q4 report (given preliminary call held on 2/8), as key strategic initiatives and growth plans for ’18+ stay on track. Net, we stay constructive on the longer-term opportunity taking shape (now bolstered by ITC passage, as well as another potential major NA retailer coming-on) and maintain our BUY rating for aggressive growth investors/strategies.”
“Incremental takeaways include an acceleration in customer engagement post ITC passage (likely a significant driver in ’19, in our view, with modest boost to margins and bookings this year), with potential for some cash recovery for deals already completed (in talks on ~5 projects representing ~$20M range of financing last year). The company has also engaged an advisor for potential China JV negotiations (6+ term sheets received to date), with selection expected in the near-to-mid-term (assuming criteria are met),” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chip Moore has a yearly average return of 4.9% and a 55.6% success rate. Moore is ranked #2575 out of 4774 analysts.
If we step back and look at the bigger picture, we can see that overall the stock has a ‘Strong Buy’ analyst consensus rating. In the last 12 months, PLUG has received 9 Buy ratings and just 1 Sell rating. With an average analyst price target of $3.30, analysts are projecting upside potential of 80% from the current share price.