Plug Power stock (NASDAQ:PLUG) rose 4.5% Wednesday as Wolfe Research initiated its coverage with an outperform rating and a target of $34, which is 24.5% higher than the current level of $27.3.
Analyst Steve Fleishman said he likes Plug’s positioning as the hydrogen market develops with its integrated strategy, established business and broad set of relationships.
According to him, most hydrogen names are concept stocks with small existing businesses but have huge growth potential as hydrogen begins to drive the energy transition.
Plug Power claims to be the largest buyer of liquid hydrogen globally.
“We think that Plug will be among the first to transition from “story” to one that has meaningful cash flow and growth,” Fleishman wrote in a note.
Experts believe green hydrogen will play an essential role in meeting greenhouse gas emissions targets worldwide, particularly in the transportation and logistics sectors.
Growth in the hydrogen economy is expected to accelerate, reaching up to 500-800 million tons used per year by 2050 and supplying 20% of global energy demand, according to Plug Power.
Last month, the company broke ground on the site of a green hydrogen production plant in Georgia’s Camden County. The company will invest $84 million in the facility.
The plant, which will serve customers in the Southeastern U.S., will produce liquid green hydrogen using 100% renewable energy. It will employ at least 24 full-time, local employees.
Source : investing
