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Plug Power: Key Growth Drivers Remain Intact, Says Analyst
The hydrogen clouds have parted for Plug Power (PLUG). There has been a lot of uncertainty around this new energy stock since March, when the company said it will need to refile fiscal 2018–2019 financial results in tandem with several recent quarterly statements, after an audit found non-cash related errors as the company was preparing its 10-K filing. On Friday, PLUG said the restatement was done, and the key areas noted were indeed non-cash related. The new filing will impact net revenue for 2018 and 2019, with a loss of $0.4 million and $0.3 million, respectively, and increase 2020’s net revenue by $7.2 million. 2019’s EPS will remain unaffected, while for 2018 and 2020, EPS will drop by $0.03 and $0.10, respectively. H.C. Wainwright’s Amit Dayal says the restatement is “largely in line with expectations” and no unexpected new details have emerged. “With this issue now, in our opinion, basically resolved, investor focus should revert to the company’s operations and expansion plans,” the 5-star analyst said. ”PLUG’s balance sheet remains solid with more than $5B of cash available to fund growth efforts. Management reiterated that this restatement process had no impact on the company’s partnerships or growth plans. In line with this, we believe all the key near-term and long-term drivers that we have previously highlighted remain intact.” This is despite PLUG’s near-term forecast being decidedly lower than Dayal’s. The company expects to deliver revenue over $67 million in 1Q21, compared to Dayal’s $91.4 million estimate. PLUG has said the quarter’s results will be announced sometime in the next 30 days. For Q2, however, the company’s outlook is more buoyant than the analyst’s forecast. The hydrogen fuel cell maker expects more than $102 million of net revenue vs. Dayal’s call for $98.1 million. The company’s gross billings objectives of $475 million in 2021, $750 million in 2022, and $1.7 billion in 2024 remain as before. “Our estimates for these periods are largely in line with this outlook,” Dayal summed up, “And we are currently not making any changes to our projections.” There’s also no change to Dayal’s rating which stays a Buy or price target which remains at $78. If correct, the analyst’s objective could deliver one-year returns of 213%. (To watch Dayal’s track record, click here) The rest of the Street is also anticipating some big gains. According to the $49.57 average price target, the coming months should deliver returns of ~100%. Overall, the stock has a Moderate Buy consensus rating, based on 9 Buys vs. 5 Holds and 1 Sell. (See PLUG stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. 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.
