Photo courtesy of Plug Power
Plug Power shares rose in premarket trading Wednesday despite the fuel-cell company reporting second-quarter revenue that missed estimates. Analysts said they expect Plug Power to benefit from the recently passed climate and tax bill.
Plug Power (ticker: PLUG) posted revenue in the period of $151.3 million, up from $124.6 million a year earlier but below analysts’ forecasts of $159 million. The company reported a loss of 30 cents a share vs. a year-earlier loss of 18 cents. Analysts were expecting a loss of 21 cents a share.
New product offerings represented more than $56 million in revenue in the second quarter, Plug Power said.
The company also said in a letter to shareholders that its “historical seasonality” for full-year revenue is expected to continue in 2022. Revenue in the first half of the year typically represents about 30% of full-year revenue, with the second half representing about 70%, Plug Power said.
The company said that its fuel business “continues to remain under pressure due to increased hydrogen molecule cost associated with historically higher natural gas prices and continued supplier disruptions.”
Plug fell 3.9% to $23.72 in premarket trading Wednesday.
Joseph Spak, an analyst at RBC Capital Markets, raised his price target on Plug shares to $29 from $18 while maintaining his Outperform rating.
Spak said passage of the Inflation Reduction Act, which unlocks nearly $370 billion to spur the transition to clean energy, is a “catalyst to accelerate growth of the green hydrogen industry and could positively impact growth of PLUG’s product lines including electrolyzers and fuel cells.”
KeyBanc raised its price target on Plug to $32 from 30% and kept its Overweight rating.
“We raise our price target from $30 to $32 based on our view thatthe energy and climate provisions in the bill will provide longstanding tailwindsto the clean hydrogen industry, and PLUG with its established positioning inelectrolyzers and hydrogen generation stands to benefit,” said the analysts led by Sangita Jain.
Write to Joe Woelfel at joseph.woelfel@barrons.com
Source: finance.yahoo.com