Plug Stock Forecast: PLUG to release financial results on May 9, Outlook is Buy

Plug Stock Forecast: PLUG to release financial results on May 9, Outlook is Buy
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Plug Stock Forecast: The overall short-term recommendation is Buy

Plug Stock Forecast: Performance Chart

•PLUG has announced that they have struck a deal with Walmart. They will deliver 20 tonnes of liquid green hydrogen per day. The hydrogen will be used to thus power lift Walmart’s trucks across various distribution centers. Walmart is aiming to have a more sustainable supply chain which has now become possible through the deal with Plug.

•PLUG has partnered up with MOL Group, a Hungarian oil and gas company to build Europe’s largest green hydrogen plants in Hungary.

Plug Stock Forecast: Support and Resistance

Source
Support
Resistance
Recommendation
$20.9 (S3)
$23.3 (R1)
Buy
$19.5 (S3)
$24.2 (R1)
Sell

Plug Stock Forecast: Google Trends

Search trend for Plug is currently lower compared to 24 hours ago.

PLUG Stock: Latest Tweets

Plug Power Inc. on Twitter: “We’ll be announcing our 2022 first quarter results on May 9, 2022. Join using the info below to hear the latest from the leading provider of turnkey hydrogen solutions for the global #GreenHydrogen economy. You can also join the webcast here: https://t.co/gLjsE5uT1w pic.twitter.com/jjSinv65e9 / Twitter”

We’ll be announcing our 2022 first quarter results on May 9, 2022. Join using the info below to hear the latest from the leading provider of turnkey hydrogen solutions for the global #GreenHydrogen economy. You can also join the webcast here: https://t.co/gLjsE5uT1w pic.twitter.com/jjSinv65e9

Plug Stock Forecast: Bull Case

  • Nascent Hydrogen Fuel Space- Hydrogen fuel industry is still budding. It is in very nascent stage and that means that in future, companies dealing in this space will have a huge market to cater. Also it implies that these companies have huge potential to grow their revenue and profitability in long term. Companies like Plug Power are still trying to establish financial viable model, but once established, it will be never looking back. Experts believe that hydrogen fuel industry is expected to grow at double digit compounded growth rates in this decade and if an investor believes in this space, Power Plug definitely provides a top notch option.
  • Head Start to Power Plug- Power Plug was established way back in 1999 and has more than twenty-three years of experience in this industry. Company has grown multiple times in this period. Currently, as of 2022, it is undoubtedly the leader in hydrogen fuel cell industry (especially in fuel cell engines powering forklifts), and the good news for investors is that it is growing and expanding its horizon. For example, it is entering market space of commercial vehicles and aerospace, which are deemed to be highly profitable and company has signed multiple deals to take a step forward in that direction. Plug Power has an ambitious goal of $3 billion revenue by 2025, with an operating margin of 17% at least.
  • Rich Cash Flows- Power Plug does not only have a head start, but is also ahead of its competitors in terms of free cash flows. As of September quarter results, it had $3.4 billion under the head of cash and cash equivalent in balance sheet. It is much greater than its competitors. Also it has only $1.2 billion as long term debt. So cash to debt ratio is in favor of Plug Power as compared to its competitors’ like Bloom Energy and FuelCell Energy.
  • A Major Correction since 2021- The stock was almost dormant till February 2020 and was trading at $4 per share. Then it skyrocketed in next one year to touch $66.87 on 22nd January 2021, and since then it has been a sloppy journey for the stock and it has fallen by more than 60 percent to trade at $23.98 as of 12:22 pm GMT on 7th March 2022. Experts believe that the stock should not be missed if it comes below $20. Currently stock is trading in a range bound manner in last 6 months and is sandwiched between $40 and $20, and the stock is trading towards the lower end of this range and that makes it an attractive buy.
  • Rising Fuel Prices due to Russia- Ukraine War- Over past couple of weeks, global world is in turmoil, thanks to Russia- Ukraine war. Not taking any side, the fact is that crude prices are on a roll. Brent crude price has gone from $90 per barrel to $120 per barrel, which has tilted people towards other means of energy and hydrogen fuel cell is a strong candidate in this space. Going forward, it is a known fact that world is going to face an energy crisis and hydrogen fuel cell can come to rescue and contribute towards meeting ever growing demands. For this reason, Plug Power should not be completely ignored. This externality will impact plug stock forecast for the medium term.

Also Read: Lucid Stock Forecast

Plug Stock Forecast: Bear Case

  • Battery electric vehicles are way ahead- It is accepted that hydrogen fuel cell is a nascent space, but it is also a fact that it is losing its relevance recently, at least in the space of passenger vehicle. For example, in 2021, only 20,000 fuel cell electric vehicles (FCEV) are sold as against six million battery electric vehicles. One of main reason is the buildup of required infrastructures for both the options. While battery electric vehicles make use of existing infrastructure, hydrogen fuel cell comes with the cost of building infrastructure from the scratch and that does not lure investors and it has significantly halted growth of fuel cell vehicles.
  • Stiff Competition in material handling space – Definitely, fuel cells are better option in heavy duty transportation and aviation. Currently, Plug Power focuses on material handling space and one reason behind subdued growth of Plug Power is that it, in material handling space like forklifts, its prices are not competitive as compared to traditional fuels like diesel or gas. Similarly, it faces tough competition in stationary and backup power segment from Bloom Energy and in transport application, Toyota and Hyundai Motors are up to a bite in market space and Plug Power is finding it difficult in this competitive market.
  • Not so good Q4 results- Q4 2021-22 results were released on 2nd March 2022 and although revenue growth was handsome, but investors looked beyond revenue growth. Company reported a loss of $0.33 per share against expectations of $0.11 per share. Cash flow statement also disappointed investors as Plug Power reported negative $358.2 million in cash at the end of 2021, which has more than doubled from the last year. Plug Power reported negative $155 million cash flow from operation in 2020. Ever growing outflow of cash, the chances of profitability further reduces for Plug Power, diluting the interest of investors.

Plug Stock Forecast: Is Plug stock buy or sell?

For a start, revenue is increasing for Plug Power and it has reported revenue of $162 million in Q4 and $500 million in 2021. But in this gloomy share market around the world, you will not be spared just because growth of revenue and profitability is a must. Plug Power not being able to generate profit in the last 23 years is a big question mark on its credibility and viability of hydrogen fuel cell space as a whole.

Given the plug stock forecast, is plug stock buy or sell? But a risky investor can bet on the company if he/she believes thoroughly in hydrogen fuel cell market space, which is nascent at present.

Plug stock forecast

Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions

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