By HSBC analysts have recently initiated coverage of Plug Power stock (ticker: PLUG) in a Monday report on the energy sector, expressing optimism for the company’s future. With a Buy recommendation and an $11 price target, HSBC sees potential for Plug Power to be at an inflection point as U.S. clean-hydrogen production expands.
Government Support and Growth Opportunities
According to the analysts, the U.S. hydrogen industry could receive a significant boost with an estimated $8 billion in federal stimulus over the next three years (2024-26). This funding is expected to support clean energy initiatives, which aligns with Plug Power’s focus. The company stands to benefit from the government’s increased allocation of funds and the anticipated growth in liquid hydrogen production.
Positive Outlook for the Hydrogen Economy
HSBC’s assessment includes a positive outlook for Plug Power and the broader hydrogen economy. However, they believe that it may fall short of meeting the green-hydrogen production targets set by the Biden administration. Despite this, they anticipate substantial growth for Plug Power, especially if sales align with the company’s 2023 guidance.
Market Performance and Analyst Ratings
While the year has been challenging for hydrogen-technology stocks, including Plug Power, HSBC’s coverage initiation adds to the overall positive sentiment surrounding the company. Currently, Plug Power stock is trading slightly lower at $7.44 in afternoon trading, reflecting a 40% decrease in value this year. However, most analysts who cover Plug Power stock maintain a bullish stance, with 61% rating it as Buy and 39% as Neutral.
In addition to Plug Power, HSBC also expressed optimism for shares of Bloom Energy (BE) and Chart Industries (GTLS), initiating them as Buy with respective price targets of $22 and $212. Ballard Power Systems (BLDS) was initiated at Hold.
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