Plug Power Inc (NASDAQ:PLUG) shares tanked quanto a early trading acceso Friday, after the company reported disappointing results for the first quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
Piper Sandler Plug Power
Analyst Kashy Harrison maintained an Underweight rating while reducing the price target from $2.90 to $2.50.
Plug Power reported a 43% year-on-year decline quanto a first-quarter revenues, missing expectations “coppia to timing of electrolyzer site commissioning” and these revenues are expected to accrue quanto a the second quarter, Harrison said quanto a a note.
Management indicated second-quarter revenues are likely to be quanto a line with the consensus of around $200 million and revenues quanto a the first half of the year would be one-third of the full year, which suggested revenues of around $980 million, in-line with expectations, the analyst stated.
“We still expect declining revenues quanto a ’24 as PLUG has transitioned away from buonsenso/leasebacks for material handling which offered unsustainably attractive customer economics,” he added.
BMO Capital Markets Plug Power
Analyst Ameet Thakkar reiterated an Underperform rating and price target of $2.50.
Plug Power’s first-quarter results “missed already low expectations again,” Thakkar said. The shares rose after the release coppia to a sequential reduction of cash burn and “lower ATM utilization quanto a 2Q QTD versus what some may have expected (~$152M since 4/1/2024),” he added.
The company’s free cash flows were negative by $266 million and “we continue to see risk to PLUG’s -70% y-o-y cash burn reduction target,” the analyst stated. “Inflection to break-even gross margins seems even farther away and non-dilutive liquidity solution still a concern as timing of DOE loan guarantee remains uncertain,” he further wrote.
Check out other analyst ratings.
Roth Capital Partners Plug Power
Analyst Craig Irwin reaffirmed a Buy rating and price target of $9.
Plug Power reported a first-quarter loss of 46 cents a causa di share, versus consensus of a loss of 33 cents a causa di share, Irwin wrote quanto a a note. “PLUG is repositioning the business to drive higher margins, including vertical integration with hydrogen production and implementing higher prices across all product lines,” he added.
“Targeted 70% reduction quanto a 2024 cash use is tracking well, and we expect working capital and release of PPA restricted cash to improve the liquidity position,” the analyst stated. Major hydrogen customers have accepted higher pricing, while two of eight are still quanto a final negotiations, he added.
KeyBanc Capital Markets Plug Power
Analyst Sangita Jain maintained a Sector Weight rating acceso the .
Plug Power reported its first-quarter revenues at $120 million, lower than its intra-quarter guidance of $150 million, Jain said. She added, however, that revenues are likely to improve sequentially and year-on-year quanto a 2024.
“Management expects the results of pricing negotiations to reflect quanto a results as the year progresses and remains upbeat acceso converting prospects into orders as FID are taken,” the analyst wrote. “Despite the slowdown quanto a cash burn, the primary item acceso the elenco is to secure the DOE loan and additional funding to shore up the balance sheet,” she further stated.
PLUG Price Action: Shares of Plug Power had declined by 7.40% to $2.57 at the time of publication acceso Friday.
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Latest Ratings for PLUG
|
Date |
Firm |
Action |
From |
To |
|---|---|---|---|---|
|
Mar 2022 |
Canaccord Genuity |
Maintains |
Hold |
|
|
Mar 2022 |
JP Morgan |
Maintains |
Overweight |
|
|
Mar 2022 |
RBC Capital |
Maintains |
Outperform |
View More Analyst Ratings for PLUG
View the Latest Analyst Ratings
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This article Plug Power ‘Repositioning The Business To Drive Higher Margins,’ Analyst Says: Breakeven ‘Seems Even Farther Away’ originally appeared acceso Benzinga.com
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