By Michael Dabaie

 

Plug Power Inc. shares rose 10% to $32.79 as the hydrogen fuel cell company said it would work with Airbus to study hydrogen infrastructure for aviation, and analysts said they expect an outlook boost.

Plug said Wednesday it would work with Airbus to study the feasibility of bringing green hydrogen to aircraft and airports, including selecting a U.S. airport as the first "hydrogen hub" pilot airport in North America to serve as a case study. The companies could also set up other joint projects, Plug said.

Morgan Stanley upgraded Plug to Overweight from Equal-Weight and boosted its price target to $40 from $35.

With the announcement of several strategic partnerships, about $4 billion of cash and cash equivalents, accelerating revenue growth and the potential for significant upside from legislative support, "we believe PLUG is particularly well positioned at the outset of a significant transition point in energy with the adoption and expansion of the use of green hydrogen," Morgan Stanley said in its analyst note.

Morgan Stanley raised its revenue estimates on its view that Plug is likely to increase its outlook at an investor event Thursday.

B. Riley Securities in a note Tuesday also pointed to a possible guidance raise.

"In our view, management is likely to increase its 2021 guidance and 2024 targets given the strength in material handling and the additional adjacent market opportunities, which should boast robust growth rates through the decade," B. Riley said.

Also Wednesday, Phillips 66 and Plug Power said they signed a memorandum of understanding to collaborate on the development of low-carbon hydrogen business opportunities.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

October 13, 2021 12:11 ET (16:11 GMT)

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