Plug Power Earnings: Large Ambitions Meet Execution Challenges, Financing Uncertainty

We lower our fair value estimate for no-moat Plug Power to $5 from $11.50 following its third-quarter results. The lower valuation is driven by continued execution challenges and financing uncertainty, which cause us to materially reduce our long-term financial expectations. We also increase our Uncertainty Rating to Extreme as we see a widening range of outcomes. Our capital allocation rating is lowered to Poor given the pace of cash burn relative to the level of unrestricted cash on the balance sheet.