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Craig-Hallum Dials Back on PLUG Stock Price Target Craig-Hallum Dials Back on PLUG Stock Price Target

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PLUG stock - Craig-Hallum Just Slashed Its Price Target on Plug Power (PLUG) Stock

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During the tumultuous peak of the Covid-19 pandemic, hydrogen fuel-cell systems specialist Plug Power
(NASDAQ:PLUG) emerged as a sizzling meme trade. However, the once red-hot PLUG stock has seen a
significant slowdown in momentum since February 2021. Despite this setback, Craig-Hallum’s recent move suggests a
touch of optimism still lingers in the air.

Just yesterday, the team led by Eric A. Stine decided to trim their price target on PLUG stock from $6 to $5
while maintaining a β€œbuy” rating. Plug Power is riding a wave of favorable trends that seem to be steering the
company toward a positive outcome. News earlier this year surfaced about the hydrogen specialist’s efforts to
secure a hefty $1.6 billion loan from the U.S. Department of Energy.

This potential capital injection could be a game-changer for a company grappling with liquidity issues. According
to Jefferies analyst Dushyant Ailani, the recent surge in PLUG stock – a 20% climb over five sessions – mirrored
the market’s hope that Plug Power can seal the funding deal successfully.

Yet, lurking beneath the surface are financial hurdles. Ailani cautioned that due to the high capital demands
of green hydrogen infrastructure, Plug Power might continue to burn cash until 2028.

Navigating Financial Headwinds in PLUG Stock

Last week, Plug Power disclosed its Q4 2023 earnings. The company’s per-share loss of $1.08 was a stark
underperformance compared to the projected 37-cent loss. On the revenue front, Plug also missed expectations,
reaching $222.16 million against a consensus of $235.22 million.

Truist Securities’ Jordan Levy bemoaned the lack of new insights from the hydrogen specialist, critiquing
management for only providing surface-level guidance for the year ahead. Levy also underscored financial
concerns, hinting that Plug Power has a considerable distance to traverse before achieving its 70% cash-burn
reduction target.

Both Levy and Ailani currently hold a β€œhold” rating on PLUG stock, along with a shared $4 price target.

Conversely, JPMorgan Chase’s Bill Peterson acknowledged a slight positive by the removal of prior
going-concern language. Nonetheless, Peterson expressed reservations about growth prospects, foreseeing only
modest revenue expansion this year.

Despite the storm clouds overhead, PLUG stock continues its market journey buoyed by the promise of widespread
upside. Research from Precedence Research suggests that the global hydrogen fuel cells market, valued at $4
billion in 2022, could surge to $39.86 billion by 2032, sporting an impressive CAGR of 25.9%.

The Significance of the Situation

Presently, analysts maintain a consensus β€œhold” rating on PLUG stock, comprising seven buys, 14 holds, and three
sells. The average price target hangs at $5.25, signaling a potential upside of roughly 38%. The most optimistic
projection, coming from H.C. Wainwright, sees PLUG soaring to $18 per share.

At the time of writing, Josh Enomoto held no positions in the securities discussed. The thoughts expressed
herein belong to the author, abiding by the guidelines of InvestorPlace.com.

Josh Enomoto, a former senior business analyst at Sony Electronics, brings a wealth of experience in negotiating
key contracts with Fortune Global 500 companies. Over the years, he has shared profound insights into
investment markets and a range of industries, including legal, construction management, and healthcare. Connect
with him on Twitter at @EnomotoMedia.

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