The Plug Power stock has done well in the past few days. It is trading at $25.27, which is about 44% above the lowest level this year. As a result, its total market capitalization is more than $14 billion, making it the biggest company in the hydrogen industry. Still, the shares are about 65% below its all-time high.
Plug Power is a leading manufacturer of hydrogen cells in the US. The company creates fuel cell power, which is used in multiple sectors like mobility and stationery products like data centres and microgrids. Its investors believe that the company will play an important role as the world decarbonizes. Indeed, the number of hydrogen cars is expected to keep growing in the coming years. A leading hydrogen truck manufacturer, Nikola, has said that it will start delivery this year. Toyota already sells Mirai, a hydrogen car.
Plug Power latest news
The Plug Power stock price rose this week as investors reacted positively to the company’s earnings. The firm said that its revenue for the fourth quarter was $162 million, which was $4.2 million better than what analysts were expecting. Most of this revenue came from its electrolyzer. In total, Plug Power had $502 million in revenue in 2021.
Plug Power also established multiple partnerships in the fourth quarter. Among those partnerships were with companies like Airbus, Fortescue, Phillips 66, and Lhyfe. In general, analysts were positive about the company’s progress.
For example, an analyst at RBC Capital Markets upgraded the stock target from $33 to $39,citing better margins. Similarly, Leo Mariani of KeyBanc said that the company seems undervalued based on its revenue multiple of 15x. Other analysts who sounded optimistic about the company were from Susquehanna and Cowen.
Plug Power stock price forecast
The daily chart shows that the PLUG stock price fell to important support at $18.25 this year. This was an important level since it was also the lowest point in 2021 and in January this year. In the past few days, the stock has moved sharply higher above this support. As a result, the shares moved above the 25-day and 50-day moving averages and the upper chin of the double-bottom pattern.
Therefore, in the near term, there is a likelihood that the stock will keep rising as bulls target the key resistance at $30. In the long-term, however, the bearish trend will resume, pushing the stock below $18.
