Plug Power Inc. shares rose in active trading towards a seventh straight profit in what would mark their longest winning streak in two years after Morgan Stanley analyst Stephen Byrd recommended the buy the day before the hydrogen and fuel cell system analyst day would have.
Plug also announced ahead of the open agreements with aerospace giant Airbus SE. at
and energy and logistics company Phillips 66
to develop green hydrogen business opportunities.
rose by 11.0% in midday trading and was thus on course for the highest closing price since July 1. It’s now up 35.9% since it last lost ground on October 4th when it closed at $ 24.32. The trading volume rose to 51.4 million shares, which is more than three times the daily average.
A seven-day winning streak would mean the longest winning streak since the nine-day winning streak that ended on September 16, 2019. Since then, there have been two more seven-day winning streaks, one ending in January 2021 and the other ending in November 2019.
The profits preceded those of the company “Plug-Symposium 2021: Here comes green hydrogen,“Which is scheduled to begin Thursday at 10am Eastern.
Morgan Stanley’s Byrd upgraded his rating to overweight six months after coverage resumed on Plug of the same weight. He raised his target price from $ 35 to $ 40.
Byrd said there were three main reasons for the upgrade:
“We see a high probability that Plug will give a positive update on its upcoming investor day and see a strong catalyst path ahead of them.”
“Significant advantage through potential legal support for green hydrogen, which could be an important driver for the introduction of hydrogen.”
“The share performance has resulted in a favorable risk-return ratio.”
He raised his 2024 sales estimate by $ 300 million to $ 2 billion, in line with the current FactSet consensus of $ 1.68 billion.
Byrd believes “a very large amount” of green hydrogen will be needed for the US to meet its decarbonization goals and sees Plug as one of the best positioned companies to benefit from it.
For the company’s Investor Day, Byrd is “most excited” to see what the company will say about its electrolyzer business, where he expects more details on the potential pipeline of sales and customer announcements.
He pointed out that Plug had already started building several of its own hydrogen production plants, which could lead to the announcement of several “acceptance” agreements.
Byrd believes that in the brick-and-mortar space, Plug will announce a major data center customer on Thursday.
And regarding the potential legislative push, Byrd said the latest language of budget balancing suggests that green hydrogen adoption will accelerate beyond his assumptions. He said legal support for low-carbon hydrogen could increase his stock price target by $ 9-10 per share.
The share of Plug has lost 2.6% in the year to date, but has increased by 93.2% in the past 12 months. In comparison, the S&P is 500 index
has increased by 15.8% this year and increased by 23.8% last year.
Earlier on Wednesday, Plug said it had partnered with Airbus to explore the feasibility of providing green hydrogen to future aircraft and airports, as part of Airbus’ goal of bringing zero-emission aircraft to market by 2035.
“We’ve revolutionized electric trucks and industrial fleets locally, so let’s look to the sky,” said Andy Marsh, Plug’s chief executive.
Plug also announced the signing of a letter of intent (MOU) with Phillips 66 to develop green hydrogen business opportunities.
“We believe hydrogen is an important avenue for hard-to-electrify industries in a low-carbon energy landscape,” said Heath DePriest, vice president of Phillip 66’s Emerging Energy Group.