Plug Power Shares Up on Partnerships, Analyst Views
October 13 2021 - 12:26PM
Dow Jones News
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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