Plug Power Co., Ltd. (NASDAQ:PLUG) stock fell sharply in early trading Friday after the company reported disappointing first-quarter results.
The results were announced amid an exciting earnings season. Here are some key takeaways from analysts.
Plug Power Piper Sandler
Analyst cassie harrison While maintaining an underweight rating, we lowered our price target from $2.90 to $2.50.
Plug Power reported a 43% year-over-year decline in first-quarter revenue, lower than expected “due to the timing of the electrolyzer site commissioning,” and that these revenues were expected to occur in the second quarter. Harrison said in the memo.
Management indicated that second-quarter revenue is likely to be in line with consensus of about $200 million, with first-half revenue of this year likely to be one-third of the full year, with revenue of about $9.9 billion. He suggested it would be $80 million. analysts said they expected.
“PLUG expects revenues to continue to decline in 2024 as it transitions away from material handling sale/leasebacks that offered unsustainably attractive customer economics,” he said. added.
BMO Capital Markets Plug Power
Analyst Amet Tucker The company reiterated its rating of “underperform” and price target of $2.50.
Plug Power’s first-quarter results “again fell short of our already low expectations,” Tucker said. He said the stock price has declined following the announcement due to continued declines in cash burn and “lower second-quarter ATM usage compared to some expectations (approximately $152 million since April 1, 2024).” He added that it had risen.
The company’s free cash flow was negative $266 million, and “we believe there remains a risk to PLUG’s cash burn reduction target of -70% year-over-year,” the analyst said. He added: “Non-dilutive liquidity solutions remain a concern as a transition to break-even gross margins appears further away and the timing of the Department of Energy’s loan guarantee remains uncertain.” Stated.
Check out other analysts’ stock ratings.
Roth Capital partners with Plug Power
Analyst craig irwin The company reaffirmed its investment decision of “buy” and the target price of $9.
Plug Power reported a loss of 46 cents per share in the first quarter, compared with consensus for a loss of 33 cents per share, Irwin wrote in a note. “PLUG is repositioning its business to improve margins, including vertical integration with green hydrogen production and the introduction of higher prices across all product lines,” he added.
“The 70% reduction target for 2024 remains on track and we expect the liquidity position to improve due to the release of working capital and PPA restricted cash,” the analyst said. Major hydrogen customers have accepted higher pricing, but two of the eight are still in final negotiations, he added.
Plug Power of KeyBanc Capital Markets
Analyst Sangita Jainism The company maintained its sector weight rating on the stock.
Plug Power reported first-quarter revenue of $120 million, below its quarterly guidance of $150 million, Jain said. However, it added that revenue is likely to improve quarter-over-quarter and year-over-year in 2024.
“Management expects the outcome of price negotiations to be reflected in results as the year progresses and remains optimistic about converting the outlook to orders as the FID is implemented,” the analyst said. Stated. He added: “Despite the slowdown in cash burn, the main agenda is to secure additional funding to strengthen the Department of Energy’s loans and balance sheet.”
Plug price action: Plug Power’s stock price was down 7.40% to $2.57 at the time of publication on Friday.
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Latest evaluation of plugs
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date |
hard |
action |
from |
to |
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March 2022 |
Canaccord Genuity |
maintain |
possession |
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March 2022 |
JP Morgan |
maintain |
Overweight |
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March 2022 |
RBC Capital |
maintain |
excellent |
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The article Plug Power ‘Repositions business to increase margins’, analyst says: break-even point ‘looks even further away’ appeared first on Benzinga.com
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