Shares of Plug Energy Inc. soared in energetic buying and selling towards a seventh straight acquire, which might match the longest win streak in two years, after Morgan Stanley analyst Stephen Byrd really useful shopping for a day earlier than the hydrogen and fuel-cell methods firm’s analyst day.
Plug additionally introduced earlier than the open agreements with aerospace big Airbus SE
and vitality and logistics firm Phillips 66
to develop inexperienced hydrogen enterprise alternatives.
ran up 11.0% in noon buying and selling, placing it on monitor for the best shut since July 1. It has now rocketed 35.9% because it final misplaced floor on Oct. 4, when it closed at $24.32. Buying and selling quantity ballooned to 51.4 million shares, or already greater than triple the full-day common.
A seven-day win streak would tie for the longest stretch of good points because the nine-day streak that ended Sept. 16, 2019. Since then, there have been two different seven-day win streaks, one ending in January 2021 and the opposite ending in November 2019.
The good points have come forward of the corporate’s “Plug Symposium 2021: Right here Comes Inexperienced Hydrogen,” which is scheduled to kick off on Thursday, at 10 a.m. Jap.
Additionally learn: Plug Energy inventory jumps to a sixth straight acquire forward of much-awaited annual symposium.
Morgan Stanley’s Byrd raised his ranking to chubby, six months after resuming protection of Plug at equal weight. He raised his inventory worth goal to $40 from $35.
Byrd mentioned there have been three important causes for the improve:
- “We see a excessive chance that Plug will give a constructive replace at its upcoming investor day and see a powerful catalyst path forward.”
- “Important upside from potential legislative assist for inexperienced hydrogen, which may very well be a significant driver of hydrogen adoption.”
- “Inventory efficiency has led to favorable risk-reward skew.”
He lifted his 2024 income estimate by $300 million to $2 billion, which compares with the present FactSet consensus of $1.68 billion.
Byrd believes “a really great amount” of inexperienced hydrogen is required for the U.S. to hit its decarbonization targets, and sees Plug as among the finest positioned corporations to learn.
For the corporate’s investor day, Byrd is “most excited” about what the corporate will say about its electrolyzer enterprise, the place he expects extra element on the potential pipeline of gross sales and buyer bulletins.
He famous that Plug has already begun building of a number of of its personal hydrogen manufacturing services, which may result in bulletins of a number of “offtake” agreements.
Inside stationary energy, Byrd believes Plug will announce a big data-center buyer on Thursday.
And relating to the potential legislative enhance, Byrd mentioned latest price range reconciliation language suggests the adoption of inexperienced hydrogen will speed up past his assumptions. He mentioned legislative assist for low-carbon hydrogen may add $9-to-$10 per share to his inventory worth goal.
Plug’s inventory has misplaced 2.6% yr thus far, however has rallied 93.2% over the previous 12 months. Compared, the S&P 500 index
has gained 15.8% this yr and superior 23.8% over the previous yr.
Earlier Wednesday, Plug mentioned it partnered with Airbus to review the feasibility of bringing inexperienced hydrogen to future plane and airports, as a part of Airbus’s purpose of bringing zero-emission plane to market by 2035.
“We’ve already revolutionized electrical vans and industrial fleets on the bottom, so now we’re turning our sights to the skies,” Plug Chief Government Andy Marsh mentioned.
Plug additionally introduced the signing of a memorandum of understanding (MOU) with Phillips 66 to develop inexperienced hydrogen enterprise alternatives.
“We imagine hydrogen is a crucial pathway for hard-to-electrify industries in a lower-carbon vitality panorama,” mentioned Heath DePriest, vp of Phillip 66’s Rising Power group.