On Wednesday, H.C. Wainwright maintained a Buy rating on Plug Power (NASDAQ:PLUG) shares with a steady price target of $18.00. The firm's stance persists even after Plug Power reported a year-over-year decline in third-quarter revenue, alongside a narrowed GAAP gross loss.
Plug Power revealed its third-quarter results for 2024, noting net revenues of $173.7 million. This figure represents a 13% decrease from the $198.7 million reported in the same quarter the previous year, and slightly below the analyst's projection of $196.1 million.
Despite the revenue dip, the company showed improvement in its margin profile as its GAAP gross loss for the quarter contracted to approximately $100.0 million, down from $131.3 million in the second quarter of 2024.
The company's operating expenses in the third quarter were marginally higher, reaching $116.1 million compared to $113.4 million in the prior quarter. This increase is attributed to enhanced deployment and delivery activities. Plug Power's GAAP net loss for the quarter also improved, coming in at $211.2 million, or $0.25 per share, a betterment from a net loss of $262.3 million, or $0.36 per share, in the second quarter of 2024.
Ending the quarter, Plug Power's cash position remained robust, with approximately $1.0 billion in cash reserves, which includes around $906 million in short and long-term restricted cash. The reaffirmed Buy rating and $18 price target reflect the analyst's continued confidence in the company's prospects.
In other recent news, Plug Power has seen significant developments. Evercore ISI adjusted its financial outlook for the company, reducing the stock's price target to $4.00 while maintaining an Outperform rating. The firm highlighted Plug Power's achievements, such as the completion of an 8 MW hydrogen fuel cell system in California and strategic acquisitions contributing to its full vertical integration in green hydrogen production.
Plug Power reported robust Q3 2024 results, with revenue reaching $173.7 million and gross margins increasing by 37% quarter-over-quarter. The company also announced a private placement of an unsecured convertible debenture worth $200 million, expected to be convertible into up to 125 million shares of the company's common stock.
The company is expanding its hydrogen production infrastructure, with new facilities in Georgia, Tennessee, and Louisiana anticipated to be operational by Q1 2025. Furthermore, Plug Power secured a $200 million convertible deal with Yorkville Capital and is exploring further debt financing options.
Evercore ISI projects growth acceleration and margin expansion for the company in the latter half of the decade, driven by expanding end-markets.
InvestingPro Insights
Despite H.C. Wainwright's optimistic stance on Plug Power (NASDAQ:PLUG), recent InvestingPro data paints a more challenging picture. The company's market capitalization stands at $1.68 billion, significantly below the analyst's price target. InvestingPro Tips highlight that Plug Power is "quickly burning through cash" and "may have trouble making interest payments on debt," which could explain the company's narrowed GAAP gross loss mentioned in the article.
The revenue decline noted in the article is further supported by InvestingPro data, showing a substantial 44.9% quarterly revenue decline in Q2 2024. This aligns with the InvestingPro Tip suggesting that "analysts anticipate sales decline in the current year."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Plug Power, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.