Rapid Rise in Plug Power Shares Over Two Months Span - Potential for Further Gains
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Plug Power's shares, a U.S. hydrogen company, have experienced a staggering 90% surge in the past three months, and there's a strong belief among insiders that this isn't the route's end. Plug Power CEO Andrew Marsh has forecasted that the hydrogen revolution in the States is just warming up, largely due to the approaching Inflation Reduction Act (IRA). Despite needing House approval, the Act is expected to pass, and it's set to offer billions for clean and renewable energy production, including a production tax credit (PTC) to stimulate the production of clean hydrogen.
Marsh believes that the IRA's passage will trigger a bonanza for Plug Power's business in electrolyzers and green hydrogen. Industries that currently use grey hydrogen (made from fossil fuels), such as fertilizer production, will now have affordable access to green alternatives. As quoted by Bloomberg, Marsh said, "With the IRA passing, we anticipate a golden age for our hydrogen and electrolyzer business."
Investors looking to diversify into hydrogen can consider the Euro Hydrogen Maxx Future certificate (ISIN DE000LS9QTU9), which encompasses the entire hydrogen value chain, from generation with renewable energy to infrastructure and fuel cells/applications. For more details about Euro Hydrogen Maxx Future, click here.
Analysts are bullish about Plug Power's future, and many have upwardly revised their price targets. For instance, Citigroup recently bumped its target up from $20 to $36. Out of 29 analysts tracking Plug Power's stock, 21 recommend buying, while 8 suggest holding. Not a single expert has advised selling, with Plug Power being widely regarded as a core hydrogen investment due to its comprehensive positioning.
Despite these optimistic sentiments, the hydrogen sector is subject to certain risks. Though the IRA's incentives for clean hydrogen production could boost Plug Power's growth, the company's ability to scale plants, minimize costs, and meet guidance will play a more crucial role in determining its performance in 2025. Recently, Plug Power secured a $525 million credit facility with Yorkville Advisors to support operations as hydrogen plant ramp-ups reduce cash burn, and the company's Q1 2025 preliminary results show a revenue of $130M–$134M, while Q2 guidance is set at $140M–$180M. Despite the April rally, Plug Power's shares are still down by roughly 50% this year and 57% year-over-year. Additionally, the expiration of a ~46-day lock-up on certain shares, which occurred on May 4, 2025, may result in increased near-term selling pressure.
- The passing of the Inflation Reduction Act (IRA) incentivizes Plug Power's business in electrolyzers and green hydrogen production, as it offers billions for clean and renewable energy, including a production tax credit (PTC) for clean hydrogen.
- Investors seeking to diversify into hydrogen can consider the Euro Hydrogen Maxx Future certificate, which covers the entire hydrogen value chain, from generation with renewable energy to infrastructure and fuel cells/applications.
- Plug Power's CEO, Andrew Marsh, advises that the IRA's passage will nearly trigger a golden age for their hydrogen and electrolyzer business due to affordable access to green hydrogen for industries like fertilizer production.
- Despite bullish sentiments about Plug Power's future and potential growth due to the IRA, the hydrogen sector is subject to risks, such as the company's ability to scale plants, reduce costs, and meet guidance, as well as the expiration of a lock-up on certain shares that could result in increased near-term selling pressure.
