Following a turbocharged efficiency in 2020’s inventory market, 2021 has been a extra subdued affair for Plug Energy (PLUG) inventory. Just like many growth-oriented names, it has been a uneven efficiency as far as traders look like unsure the place the inventory is heading subsequent.
Nevertheless, Evercore’s James West has no such reservations when laying out the bull case for the hydrogen gas cell specialist.
“As a frontrunner in hydrogen gas cell and electrolyzer know-how and shortly to be a significant producer of inexperienced hydrogen, the corporate is nicely positioned for the explosive development underway in hydrogen and the institution of a hydrogen financial system,” West mentioned following a go to to PLUG’s manufacturing base on the firm’s headquarters.
The joy within the facility is “palpable,” says West, the place the “sheer quantity” of apparatus able to be shipped out to huge prospects is proof of the corporate’s development trajectory. Furthermore, the corporate expects ~75% of its inexperienced hydrogen manufacturing to be bought out by the top of 2022.
The expansion can be evident within the amenities’ swelling headcount — the quantity has expanded from 600 initially of 2020 to round 2,000 right now.
Nevertheless, the method of development has not occurred over evening, however is one the corporate has been working towards over the previous few years.
West notes CEO Andy Marsh and crew “laid out their preliminary positioning technique seven years in the past to have all of the capabilities, the merchandise and an understanding of the markets which are actually quickly growing.”
On the identical time, since final yr there was a shift within the notion of the corporate’s worth proposition, with extra customers and prospects seeing electrification as “extra dependable” and costing lower than different gas sources. Moreover, local weather danger is being taken extra critically, whereas the world is realizing the significance of hydrogen to the “main adjustments underway within the world financial system right now.”
As such, West charges PLUG inventory an Outperform, and has a $42 value goal for the shares. The implication for traders? Upside of ~23%. (To look at West’s observe document, click on right here)
Turning now to the remainder of the Avenue, the place the typical value goal is simply above West’s; at $44.38, the determine suggests 12-month positive factors of 30%. Total, the inventory’s Reasonable Purchase consensus ranking is predicated on 8 Buys vs. 5 Holds and 1 Promote. (See Plug Energy inventory evaluation on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is rather necessary to do your individual evaluation earlier than making any funding.