Company Reports

We will discontinue analyst coverage of Plug Power on or about Oct. 21.

Plug Power reported second-quarter revenue of $174 million and gross margin of negative 31% compared with negative 92% in the prior-year period.

Plug Power reported first-quarter revenue of $134 million, in line with guidance. Cash burn was approximately $150 million, nearly a 50% year-on-year reduction.

Plug Power seeks to be a leader in the green hydrogen economy. Its strategy is centered on its vertical integration approach to provide customers a complete hydrogen solution—from fuel cell and electrolyzers to green hydrogen fuel.

Plug Power shares rose nearly 40% in early trading on April 28 after the company announced additional financing and preliminary first-quarter results. The financing consists of a credit facility of as much as $525 million with Yorkville Advisors, with an initial $210 million tranche.

Plug Power reported fourth-quarter revenue of $192 million, well below consensus estimates and our expectations. However, the company did make progress on reducing cash burn in the quarter, which was reduced by 70% year on year.

Plug Power seeks to be a leader in the green hydrogen economy. Its strategy is centered on its vertical integration approach to provide customers a complete hydrogen solution—from fuel cell and electrolyzers to green hydrogen fuel.

On Jan. 16 Plug Power closed a $1.66 billion loan guarantee from the US Department of Energy's, or DOE's, Loan Programs Office. The loan is intended to help fund the buildout of Plug's green hydrogen network.

On Jan. 3 the US Department of the Treasury released final rules for the clean hydrogen production tax credit, or PTC, established by the Inflation Reduction Act.

Plug Power's third-quarter results showed a 37% and 35% decline in gross margin loss and cash burn, respectively. Additionally, the firm made progress on increasing its liquidity with a $200 million convertible debt offering.

We are lowering our fair value estimate for no-moat Plug Power to $2 from $3.50 following its second-quarter results. The primary driver of our lower valuation is a reduced long-term revenue and margin forecast. Our Extreme Uncertainty Rating and Poor Capital Allocation Rating remain unchanged amid continued constrained liquidity in the near term. We view shares as fairly valued.

Plug Power seeks to be a leader in the green hydrogen economy. Its strategy is centered on its vertical integration approach to provide customers a complete hydrogen solution—from fuel cell and electrolyzers to green hydrogen fuel.

On May 14 the US Department of Energy announced a conditional commitment to Plug Power for an up to $1.66 billion loan guarantee. The loan would be used to finance up to six projects to produce zero- or low-carbon hydrogen.

We maintain our $3.50 fair value estimate for no-moat Plug Power following its first-quarter results. Our Extreme Uncertainty Rating and Poor Capital Allocation Rating remain unchanged amid continued constrained liquidity in the near term. We view shares as fairly valued.

We maintain our $3.50 fair value estimate for no-moat Plug Power following its fourth-quarter results. Our Extreme Uncertainty and Poor Capital Allocation ratings remain unchanged amid continued constrained liquidity in the near term. We view shares as fairly valued.

We've lowered our fair value estimate for no-moat Plug Power to $3.50 per share from $5 following the company's annual business update. The decreased valuation is driven by a lower revenue growth outlook, resulting in reduced operating leverage relative to our prior assumptions. We maintain our Extreme Uncertainty Rating as we continue to see a wide range of outcomes for the company, given constrained near-term liquidity. We view the shares as fairly valued.

Plug Power seeks to be a leader in the green hydrogen economy. Its strategy is centered on its vertical integration approach to provide customers a complete hydrogen solution—from fuel cell and electrolyzers to green hydrogen fuel.

We are maintaining our $5 fair value estimate for no-moat Plug Power following news that the company has entered into an at-the-market equity issuance program. As a result of our Extreme Morningstar Uncertainty Rating, the shares are still in 3-star territory despite a selloff in recent days.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

Media reports have picked up on leaked guidance for the hotly contested U.S. green hydrogen tax credit. While the rules have yet to be finalized, the initial reports point to slightly more restrictive guidance than hoped by many industry participants. Shares of hydrogen-exposed equities underperformed on Dec. 5, with the Global X Hydrogen exchange-traded fund down 2.9% versus the S&P 500 decline of 0.1%.