Stocks go up, stocks go down, that is a simple fact of the market’s behavior. The next bit is the nice part, however: stocks go up again, too. Just ask Plug Power (PLUG) investors, who over the past couple of years have seen the pendulum swing violently in both directions.
After giving back to market this year a big chunk of the previous 12 months’ incredible share haul, the stock has been on fire again recently, up by 36% over the past week alone.
The company’s annual symposium takes place today (October 14) and has been noted as a catalyst for the shares, but PLUG hasn’t been saving all the good news for the event; On Wednesday, the company disclosed two interesting developments.
One, the hydrogen fuel cell maker announced a partnership with Airbus to look into the possible use of hydrogen for aircrafts and airports. PLUG will explore the possibilities for using hydrogen infrastructure at airports, while Airbus’ main area of interest revolves around whether it can develop a hydrogen-powered aircraft.
The latter part is especially intriguing, says Oppenheimer’s Colin Rusch.
“While the material-handling opportunity in the space is clear and growing, we believe the integration of fuel cells into planes and eVOTLs is not reflected in PLUG shares and offers an incremental growth driver for the company,’ the 5-star analyst said.
The company also announced it is partnering with Phillips 66 to develop low carbon hydrogen “opportunities.” Phillips' existing industrial-scale hydrogen production facilities will come in handy here. The two have signed a MOU (memorandum of understanding) which offers the “potential for co-location, operational efficiencies and some potential capital efficiencies for PLUG.”
With the company hard at work at making its hydrogen network a “reality,” Rusch thinks this kind of arrangement could be a “meaningful accelerator of the green hydrogen buildout.”
Expect more info on both developments at the event. In the meantime, Rusch remains “bullish” on the shares, sticking with an Outperform (i.e., Buy) rating and $62 price target. The implication for investors? Upside of a strong 84%. (To watch Rusch’s track record, click here)
The rest of the Street might not be quite as exuberant but going by the $40.73 average price target, still projects the shares will rise by 21% over the coming months. Overall, based on 13 Buys vs. 3 Holds, the analyst consensus rates PLUG stock a Strong Buy. (See Plug Power stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.