Hydrogen fuel cell company shares Plug power (NASDAQ: PLUG) The surge continues again today. The stock has gained more than 25% in the past five trading days. There have been several catalysts for the stock’s recent rally. That includes a 17.8% gain as of 11:50 a.m. ET today.
Making green hydrogen
Plug Power shares have plummeted since the hint Bankruptcy is a real possibility At the time, the company issued a “going concern” warning in its third-quarter report in November. But shares rebounded after Plug provided a business update last week. In that update, management announced that it has begun operations at its new green hydrogen plant in Georgia.Currently the largest liquid green hydrogen plant in the United States
The development prompted Roth MKM analyst Craig Irwin to upgrade Plug Power stock today and double his price target on the company to $9 per share. That stock price target helps explain today’s move, as it would be more than 140% upside from yesterday’s closing price.
Digging out financial holes
Plug has been burning cash as delays hit its hydrogen production plans, causing it to buy hydrogen on the open market. But a new factory in Georgia could help cut costs and boost revenue.
Yesterday, a major US steelmaker highlighted a use case for hydrogen cleveland cliffs Cliffs CEO Lourenco Goncalves discusses its use of hydrogen in steelmaking. Company’s fourth quarter conference call “Hydrogen is a real game-changer in iron and steelmaking.” He also noted that “the United States is closer than any other country to becoming the first country in the world to have abundant and competitively priced green hydrogen. to support a truly green industrial revolution.”
Plug Power’s new plant should be a beneficiary of this demand. That helps explain today’s renewed optimism about Plug Power and its stock. However, the company still has a long way to go before realizing profits from its hydrogen production plans. Investors should be aware of the risks involved even as new production facilities come online.
Should you invest $1,000 in Plug Power right now?
Before buying Plug Power stock, consider the following factors:
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Why Plug Power Stock Is Rising Again Today Originally published by The Motley Fool